Thread: No Stop Losses!!!

For anyone that thinks they do not require a stop loss...
I use a stop loss. You should, I'd like to tell you, if you are one that doesn't. It's storming here fairly bad. I've an order to be produced if price gets to a specific spot. I set my stop limits right away. What could happen if I had that order on the market and it had been triggered and I didn't put a stop loss on thinking I could only watch it after this order has been triggered and place the stop loss on. In my computer was down because of the storm, and no stop loss a person do. I have been thinking about this and would like to remind people of it and the ones that think they do not need you. Could be quite disasterous. Just me rambling again. I'll shut up.

Excellent point. Stops are a necessary evil for most systems.

I, myself, don't use stops, but the system does not allow for them....but mine is a rare exception.

I know of a few BIG traders who don't use stops as they tier their entrances against the tendency in key levels. . .which is a popular way of industrial traders.

Check out the COT data soemtime and you would be suprised at just how hot it's to trade AGAINST the trend in the industrial market.

I would not ever advoe anyone taking unnecessary risks, but I believe stoplosses are over rated. You see, for creating trading decisions that are bad they tend to be turned into a crutch. If your not confident about a trade, you can throw it on with a stop and let the market do as it will. Trading without a stoploss will help keep by forcing you to take the best trades you disciplined. You have to know how to manage but I find that trading without a stoploss is a risk management tool using a single.

The purpose about connection disruptions is a great person, and I take it quite seriously. This is why I keep several connections into this broker. If you do not have this sort of commnt, then when a storm is brewing, you should definitely have a stop in or suspend trading.

Just my two pesos...

Originally Posted by ;

I'd never advoe anybody taking unnecessary risks, but I think stoplosses are over rated. You see, they tend to be turned into a crutch for creating trading choices that are poor. If your not convinced about a trade, you may easily throw it with a stop and allow the market do as it will. Trading without a stoploss will help keep by forcing you to only take the best trades you disciplined. You have to understand how to manage a trade, which comes with skill and experience, but I discover that trading without a stoploss is a better risk management instrument.

Gee I'd like to concur with you, but I can't. You state trading without a stop loss will keep you more disciplined when opening a trade, that might be true, but we all know that the market rarely listens to the ideas in our minds, and quite often a sure fire winning trade once placed, turns into the specific opposite. Trading without a stop loss requires you to have a cast iron resolve at time of exit, once all this is when we create and eliminate money, not when we enter, and there-in establishes the problem because many who trade without a stop loss do so since they do not want to be wiggled out unnecessarily, believing if price moves in the incorrect direction, it is just some minor noise that will move in the ideal direction soon.

It will just be a matter of time before a market change will wipe out a huge percentage of these peoples accounts, I have seen it time and time and time again and it pains me each time I see it. If someone wants to counter the debate with but I understand emotionally at what stage I shall shut the trade, then why not put a disaster stop at that level, therefor eliminating the possibility of this situation renasdad was speaking about using all the storm, or technical problems etc..

Smart stop loss positioning is a shield against you making the incorrect choice, a point at which you are able to say hello well I was wrong about that one and proceed. Don't put a stop and you're stuck waiting and waiting for things to flip around, tying equity up and, even if the trade does turn around, lulling you that you read the market correctly, false optimism is dangerous. Each to their own though I hope I see you.

Oh and mental stop are still stops by the way.

What should you believe smart?

Some exchange 5min others more time period like 4hrs. Would 15pip stop reduction be enough for 5min or 15pip be tight for 4hrs

I would have to say using 4 hr charts, a person ought to have more for a halt loss. 15 pips does not leave much room for error at all. And if a person uses chartsI don't know.

In my opinion, you shouldn't consider stop losses in terms of pips when figuring out where to place themI ask myself the folling question when placing stops:

at exactly what point would my trade idea be proven wrong

Once you figure that out, then you seem just how many pips out it is and whether it's too much on your risk management level.

Originally Posted by ;

I know of some BIG traders who do not use stops as they tier their entrances against the tendency at crucial levels. . .which is a favorite method for industrial traders.

I do so. I have a high number of orders floating around waiting for trends to undo. I do have connected to the orders, nevertheless. I find that if price breaks s/r it should continue immediately, or back up and then proceed. If it backs up a lot, it's a fakeout plus this can be protected against by also a stoploss.

Originally Posted by ;

I would have to state with 4 hr charts, a person ought to have much more to get a stop loss. 15 pips doesn't leave much room for error. And if someone uses chartsI don't know.

I are inclined to utilize 15 pip prevent losses on my trades and I reside in 1 min - 30 min charts... I use 30 minutes to be sure I am somewhat in fact and hone in where to enter down by going farther and farther to 1 min charts. I plan for 5 to 6 pip profits per trade.

Most of the time if it skews more than 15 pips I had been incorrect or it was a crazy summit that took my SL and dropped me a pile of money (which has happened once). Thankfully demo money so far.

Originally Posted by ;

In my opinion, you shouldn't consider stop losses concerning pips when figuring out where to place them, I ask myself the folling question when putting stops:

at what stage would my trade thought be shown wrong

Once you figure that out, then you look how many pips away it is and whether it's too much for your risk management degree.

Exactly. I stopped losing money once I found out that positioning determines risk and position size. When you understand your theory of where the price is about shows it shouldn't go against you more than 20 pips, place a 20-pip stoploss.

If theory states price could go against you 200 pips, and also you don't have sufficient money on your account to do the trade inside your risk level with a 200-pip stoploss, don't do the trade.