Thread: No Stop Losses!!!

Originally Posted by ;

I used to trade without prevent losses and haven't lost a trade doing so but have had some embarrassing situations (the worst was 40 points away from a 50% account drawdown). You are able to get away with it when the markets ranging but when a wonderful trend starts in the wrong path for you it might be a long wait for it to come back and at what stage do you decide to take the loss? Stop losses are now used by me as I'd rather take the loss and move on instead of the slow torture of seeing the price movement day after day.

That is why one doesn't suppose when risking that much. You ought to be sure. At the start of every week (this is where I've been discovering a lot of reversals) I revaluate the entire situation, and I patiently wait for a fantastic entry point. And I prevent ranging markets.

94902

Originally Posted by ;

Well, in all fairness I often lose 10-30% on a failed trade therefore that does not bother me. I technically have a cease also, its called a margin call at loss. What makes it work for me personally is a winner nets 30-100% and the wins are a lot more common then the declines. It's not the way most people trade, but I'm fine with this...

I guess it really depends on why your accepting the transactions that you are. If your taking them because of a chart creation or an indior then by all means you should use a stop incase the formation doesn't pay off. My reasons for accepting trades have to do with the chart thus a stoploss is an arbitrary guess as to how things will play out.

A fantastic portion of why this works is because I do not take any random trade. If I don't know exactly what's happening I hold off until I do. Risking 50 percent of my account prevents me out of gaming on winners.

The point I was attempting to make was that if your not confident in the trade, you likely shouldn't be taking it. Trading with no stoploss is a testament to just how much you really believe in your analysis. If you do not believe in it or can not accurately determine what your risking, then maybe you should think about your analysis needs to be improved. A stoploss in the way it is deployed by most is simply a crutch for bad analysis.

PS- I say , but I actually don't actually me youpersonally, just anyone in particular that happens to see this...

that I have a couple points I wished to make on this comment.

1)Just out of curiosity..are you trading actual money?
2)Losing 10-30% on any trade is absolutely nuts. No matter how accurate your system is, you're begging for trouble. Your risk of ruin is simply off the wall . You're just going to wash out yourself, if you keep losing those quantities. It is possible to hit a losing streak. There are NO GUARANTEES in any market. I see folks on this board squandering their time refining optimizing, and they just don't get that nobody is going to be perfect. You're going to start from zero if you hit on a bad series. Stop losses are a massive portion of risk management, they specify the trade. At some stage BEFORE you place the trade you ought to be saying ok, this is where I know I'll be incorrect, that's it, and place in the stop loss. It is NOT a crutch. Out of personal experience I have wiped out my account when I started to trade real cash and the reason behind the blowout was the simple fact that I refused to give in and take a loss. I believed I had been right and the analysis was right, so that I won't back down. Guess what, the market DOES NOT CARE WHETHER YOU ARE RIGHT OR WRONG. It is likely to go in its own direction. Putting stop losses isn't a crutch. It appears as if you're hoping to win on each trade and you don't even believe you can lose. The blowout will come. You may see. See Mark Douglas. Both novels. To me this seems like on your own part. Wayyy too much self. You're like the fish that I play poker with online who simply don't understand when to discharge a hand and will bluff in the pot at all costs. You have to let this go. You should know it really can go either way when you go into a trade. Yes I would ALL like my transactions to be winners, but I do not expect them to. . It appears as if you do, making it more difficult to let go if they move against you, which explains why you're losing 10-30% of your account on every other trade. The traders in the world are effective for a reason and ask some one of these and they will tell you: RISK MANAGEMENT. 30 percent is crazy. Having stops limits the losses when the market is rampaging the way. The second I got that has been the moment things turned around. I am back in the game, trading with real money, and am doing exceptionally well. Not neccessarily due to my machine, but because my risk management is better than that which is used to be.
3)Finally, how you trade is the way you trade. You have your system, I've got mine, and you will find four million systems on this plank. Individuals will trade they want to. So when you read the second stage, I'm simply stating my point and the way I personally trade. But if you're comfortable doing what you're currently doing. . .THEN DO IT...I'm simply giving my observations and remarks. I believe that it's a recipe for the explosion. But trade the way you like. You can believe in your system as much as you would like, what matters is what the market does. I do not believe that you can achieve the next level of trading of in which you'd probably like to be until you get that.

THE HUN.

94903If you do not believe in it enough or can't accurately determine what your risking, then perhaps you need to consider your analysis has to be enhanced

With a stop loss decides EXACTLY what you are risking. You are currently likely to waffle.

THE HUN.

94903Sorry I'm butting in but I just want to state what I feel about prevent losses =\

I just use stop losses when I have to go out. Otherwise, I think that are quite dangerous. I have experienced my stop loss carried out by spikes and also to see prices move in the direction of my commerce. Since those couple of times, I've put a stop mentally in my mind. In case you have the area you're better off exiting a position.

94903Out of interest, do you exchange real money?

THE HUN.

Dont Utilize stops that are 94903pros

94903Yea I do.

I have the same approach to prevent losses and for the same reason. All too often I have observed spikes which seem to make no sense, except possibly to clear traders' stops. Because of this, unless I am going out, want to get some sleep or am trading news, I don't use stops. I feel that using ceases is asking for trouble and I would keep that information confidential. I know what my quit is, but I find no reason for my broker to know. As I mentioned previously there are circumstances when they are inevitable, although I hate to have to use ceases.

94903

Originally Posted by ;

I have the same approach to stop losses and for the same reason. All too often I have observed spikes that appear to make no sense, except maybe to clear out traders' stops. As a result, unless I am going out, want to find some sleep or'm trading news, stops are not used by me. I believe that using ceases is asking for trouble and I would keep that information private. I understand what my quit is, but I find no reason for my broker to understand. As I mentioned previously there are circumstances when they're unavoidable, although I hate to have to use ceases.

If you don't expect your broker with quotes why do you trust him and pay in real money? Each time my stoploss is hit and market reverses I assess platforms for minimum/maximum - whether it's similar I do not make big deal out of it. When it's not similar, I then write to my broker. It occurred in last 5 months and I was returned all the money.
Best regards,
Lucky

94903I rarely use them and do nicely, Athough I do use mental stops...
Yes its a real account.

Do what works best for you and to every one his own. .