stop loss. why????

[Liquid validity]

just thought it would make for an interesting thread had no sleepless nights since i started using my own advice and not a so called expert i had plenty of sleepless night then you seem very quick to crticise you must all be very good traders

People are trying to help you...
Would it be criticism if I said it wasn't a good idea to drive a car that had no brakes,
even if you insisted you could anticipate slowing down, use the gears etc.

Anyway, I'm off, banging my head against a wall here.
Ultimately I suppose people only learn the hard way...

 

[jeffre4]

again didnt want it to be about my trades just curious im obviously the majority of one here

 

[jeffre4]

over exposure/greed will kill you not no stops when can a trader say that they are successful and their method works after 6mths 1 yr 3 yrs

 

[barjon]

................. You only need to find 1 instance..........

Peter

Yes, and that's it in a nutshell . Over the years there have been many threads with people "convinced" about the same thing - in essence it's "no stop, add to losers and it'll come good in the end". Lo and behold it works time and time again, until the one occasion arrives that it doesn't when account wipe out is the result.

 

[BeginnerJoe]

Never good to go short in a bull market that's for sure. I reckon ftse is going to break through 6000 shortly. There's plenty of pent up energy in the rising lows.

 

[pboyles]

Buy the DOW at 14,198 in October 2007. Can't go wrong, it will always hit your target.

 

[DionysusToast]

LOL - this old chestnut again.

If I had a 'no stop loss' strategy, I think the one thing I'd absolutely not do is bring it to T2W.

For some reason, it seems to accelerate the inevitable. I reckon you could do this for 20 years and make money but as soon as you bring it to T2W, the blow up occurs within 6 months.

 

[Splitlink]

LOL - this old chestnut again.

If I had a 'no stop loss' strategy, I think the one thing I'd absolutely not do is bring it to T2W.

For some reason, it seems to accelerate the inevitable. I reckon you could do this for 20 years and make money but as soon as you bring it to T2W, the blow up occurs within 6 months.

You spoilsport!

I bet you've got a few stop ideas you're not telling us about.

 

[BeginnerJoe]

For some reason, it seems to accelerate the inevitable. I reckon you could do this for 20 years and make money but as soon as you bring it to T2W, the blow up occurs within 6 months.

I don't think it will take 6 months. They announced in the news last week that they want higher prices by Christmas, and I am sure they will get it plus a bit of over shooting when all the noobies pile in, having closed out their shorts.

 

[Jack Francisco]

Just go trade without stops for a bit. Then you will find out what everyone else already found out.

It is true stops are like magnets attracting price moves and get knocked out. It is your job to make it so that it doesn't attract price moves. It's an interesting puzzle. See if you can solve it. You are damned if you use it, and you are damned if you don't. It's quite a paradox.

In a long run, sooner or later you will loose all your money. This is the bloody truth of using NO stoploss. You can trust me, you will fail if you don't use the stoploss order. I have made the same mistake in the beggining, and the situation made me sad! :clap:

 

[new_trader]

My 2¢

Trading is a profession that must be learned. Like any other profession there is a cost for the education, but most people see value in paying for it because they are able to see the long term picture. They see the long term benefit and rewards so the money paid out in the beginning is considered an investment in the future where the returns will be much greater than the initial cost. People studying to be a Surgeon don’t want to start operating within a few months in order to avoid further expensive tuition fees.

Newcomers to trading must face the fact that they are nowhere near experienced or proficient enough to make money and they will be paying for their trading education through losses. The idea of a STOP loss is to keep the cost of the education as cheap as possible so that they can last in the game long enough to complete it.

 

[jeffre4]

i never said i was new at trading. Over 3 years i have doubled my stake each year but i think you all believe i just got lucky (maybe i have) it would appaer that all traders put stops on and that's fair enough

 

[ian23]

i never said i was new at trading. Over 3 years i have doubled my stake each year but i think you all believe i just got lucky (maybe i have) it would appaer that all traders put stops on and that's fair enough

I think it all depends on what you trade and what you are willing to risk. Say you are trading a 100k account, trading stocks. Have 20 penny stocks each to the value of 5k. You can get away with no stops as you are willing to risk any one position going to zero and losing the 5k.

If you trade leveraged products, you can not be going around with no stop losses. You will end up losing more than you have in your account if things get really crazy.

Just don't do it.

 

[NVP]

if people dont want to use stop losses then let them do what they want ........I cant be bothered to argue

perhaps they are right and we are all wrong

N

 

[Splitlink]

I think that the most important point, here, is being missed---especially by spreadbetters because these firms (and I am quite happy with mine) do not have such sophisticated platforms as the big brokerages. The latter put the trades straight on to the exchange, the stop losses, too. The SB firms, probably, may not, I do not know.

But they crash more often. Some say that they do it at crucial points and on purpose. That, I do not want to go into. Normally, for a few minutes max, but there you are, in the dark. It is not a pleasant situation to be in and when one tries to phone in, well, join the party!

Apart from that, I have had an internet crash for 24 hours.

These are beyond our control and, even a hard stop, 20-30 points away which, under normal circumstances you would not allow the price to get near, is prudent, just to protect the account.

 

[BeginnerJoe]

These are beyond our control and, even a hard stop, 20-30 points away which, under normal circumstances you would not allow the price to get near, is prudent, just to protect the account.

The OP is doing long term trades where intermittent internet outage isn't a problem. What he's got is basically a hold until win strategy where a single loose could wipe out his account because he would not take a loose for an answer. Sooner or later, as it does now, the market wouldn't stop going in one direction against him. So we have a cry for help.

All too often, people over-estimate their capacity to withstand the market going against them and stop losses can help in that situation. If you are going to be forced out anyway, it's better to get out early.

 

[ZEN archer]

i think you all believe i just got lucky (maybe i have) it would appaer that all traders put stops on and that's fair enough

I don't believe that

Over 3 years and doubling each year - that's excellent. I don't think you can achieve that with being lucky only - maybe you found a new way of trading (no stop way)

If I were you, I would keep it secret (not to lose the edge)

 

[ZEN archer]

Do you use hedging instead of stops? (if you don't mind revealing that part)

 

[jeffre4]

your missing the point. if i believe that there is a valid target a lot lower down that as moved away from me but i beleive that it will be met in the next few months why would you not be patient and wait for it and add positions as it moves further away.if i put a stop on and it hits it what is my next trade when i still believe the initial one was valid. i do edge it. i can still continue day trading. like i said before how many times do you get stopped out and watch it retrace. you then atart chasing your losses.

 

[new_trader]

I don't believe that

Over 3 years and doubling each year - that's excellent. I don't think you can achieve that with being lucky only - maybe you found a new way of trading (no stop way)

If I were you, I would keep it secret (not to lose the edge)

I don't believe it, as if trading without stops hasn't been tried before. Losses on a misjudged short position can be infinite, it is only a matter of time. There is something we aren't being told, like that this is a long only strategy:?:

Having just read the above post, it isn't!