Stop loss

[hawly007]

I want to know if stop loss have disadvantage, I have a reason for this question, don't think that am stupid.:?:

 

[kimo'sabby]

I want to know if stop loss have disadvantage, I have a reason for this question, don't think that am stupid.:?:

Which is riskier, a market order or a stop order?

 

[Shikamaroo]

I want to know if stop loss have disadvantage, I have a reason for this question, don't think that am stupid.:?:

not if you put it at a level that if hit, you dont want to be in the trade

 

[Dinos]

imho stop losses are your insurance policy for getting out of a bad trade, where you set will depend on the t/f and system you use, not that close that its gets taken out in the movement and not to far away you incur significant losses, stops can keep you i this business, nothing wrong in admitting you got the trade wrong, everything right in protecting your capital position

 

[hawly007]

Big thank to every body

 

[Dinos]

fwiw, when I enter a trade, I know 2 things my stop loss level and my limit level, I place both on every ticket, wonderful piece of mind, knowing what my potential loss and win will be.

 

[Straddle8]

They help you limit your losses, in case a trade turns against you. To cite Ed Seykota:

If you can't take a small loss, sooner or later you will take the mother of all losses.

 

[shadowninja]

There are only two types of traders who trade without stops: newbies and seasoned professionals. Which one are you?

A seasoned pro will know when he wants to bail so has a mental stop.

 

[Black Swan]

There are only two types of traders who trade without stops: newbies and seasoned professionals. Which one are you?

A seasoned pro will know when he wants to bail so has a mental stop.

Although a swing trader I pass the time scalping/playing EUR/USD off short TFs tick chart/not minutes. I set a stop of 30 each and everytime, gets breached approx. 5% of trades. My average pip loss per scalp/short term trade is ten pips. 'kin delighted with that stat as I work the edge/follow price, nothing too clever but I often get the signal to close at a couple of pips loss

PS been short since approx. 13:56

 

[meanreversion]

Stop loss is just one form of exit, the other being a take profit. You should always know your exit plan in advance.

Shame Rumsfeld didn't think about this before barging into Iraq.

 

[amit1986]

The answers given here are pretty obvious - that stop losses protect your capital. This is true for swing trading / holding positions overnight.

However, for day trading, if you are sitting there and watching your trades, I don't think stop losses are necessary. Personally, I don't put stops in the market, but I do have mental stops and have the discipline to stick to them.

The problem with stops for day trading is that if a block trade (or any other trade) goes off away from the current market, and it's below your stop (for a long position), then you will automatically be stopped out at the current market price, even though prices haven't necessarily hit those levels.

Believe it or not, block trades are quite common, so don't go around thinking that it's a rare event.

 

[price777999]

Although a swing trader I pass the time scalping/playing EUR/USD off short TFs tick chart/not minutes. I set a stop of 30 each and everytime, gets breached approx. 5% of trades. My average pip loss per scalp/short term trade is ten pips. 'kin delighted with that stat as I work the edge/follow price, nothing too clever but I often get the signal to close at a couple of pips loss

PS been short since approx. 13:56

hi , whats your average pip profit per trade , if you dont mind me askin ?

 

[Chartsy]

a good way to trade 'without' a stop loss and to let volatility work is to have a level over which if price closes, you exit. far beyond that you can have an 'insurance' stop loss which is rarely if ever hit

 

[bevok]

Do people really place trades without even an emergency stop? What happens if you have a power outage or your broker's system goes down? Surely its better to have something in the market 'just in case'.

 

[Black Swan]

hi , whats your average pip profit per trade , if you dont mind me askin ?

sorry bud only just got around to seeing this, when short term TF trading it's circa 30 pips, swinging 80+

 

[DionysusToast]

Do people really place trades without even an emergency stop? What happens if you have a power outage or your broker's system goes down? Surely its better to have something in the market 'just in case'.

Just what I was going to write.

Mental stops may be fine for 'pros' - but for me trading from home, every trade has a stop and targets on automatically - just in case of a failure in the system - which could be your PC, your ISP, your power company, your brokers servers....

Of course, once in a trade I can move around the stops and targets but to not have them on could be catastrophic.

 

[Probafix]

Stop loss is one of the most important thing in trading. who want to win in it, can use it.

 

[lbranjord]

stop losses are like jock straps

 

[FSTrader]

there are 5 different types of stop methods:

1.Hard stop - placing a stop a predefined number of pips away from the entry price
2.ATR % stop - stop calculated by taking a percentage of the current ATR
3.Multiple day high/low - placing stops at predetermined day's low or high
4.Closes above/below price levels - placing stops above or below specific price levels (ie: double zeros)
5.Indicator stop - stopping out a position based on the value of a certain indicator (RSI, ROC, CCI, etc)

 

[lbranjord]

My best stops have always been underneath a daily bar or using an Average True Range level. Using S/R is not so great sometimes because price swings at them too often. Usually if stop loss hits ATR, it kept going the wrong way after and my trade was wrong.

with S/R I often saw price hit my stop and then do exactly what I wanted from the trade, so that was fruterating.