Stop loss

[spinola]

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

Well, why not just think of it in terms of stopping the trade? I mean if one knows why one is starting a trade, then surely , by extension, one will know when to stop the trade.

The traders actions of starting and stopping trades over a number of trials will vest him with a profit or loss for all his hard work and actions. If he knows his business , he will continue to do good business, if on the other hand the actual dollar amounts show consistent negatives, this will highlight he does not know his business, but will he know that even ? By golly , how the ell do I know ?

Survival of the fittest in the world of biz, natural selection in all it's glory, so stand steady men, as once more into the breach we head, once more.........

 

[Janurary]

Dinos is right. Set the bottom line of loss level.

 

[PeterPenrose]

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

Very wise words, nice 1!

Peter

 

[anley]

Stop losses are a trader's best friend.

Everyone MUST realise that point - THEY ARE YOUR BEST FRIEND.................