Stop Losses

peedee

1
341 0
Are stop losses (that is what level to set them at) really up to the individual and how comfortable they feel with thier trading or a particular trade, or are there ratios and pecentages involved depending on the size of thier account. Cheers PeeDee. :?:
 

Trader333

Moderator
8,591 926
Ultimatley it is up to you to decide unless you lose so much that the broker closes the trade for you because you have used your allowed margin.

Depending on how you trade an appropriate method would be to use a multiple of Average True Range (ATR) to determine at what price your stoploss should be set at.


Cheers


Paul
 

Grey1

Senior member
2,186 178
Stop loss levels are triggered by two ways..

1) Some kind of a technical Signal ( volatility or ATR based or others )
2) Some kind of a Risk assessment

I strongly advise you to adjust your stop loss levels using risk assessment techniques than a TA signal as the former includes the capital as integral part of trading . I am afraid you need to study these techniques and understand them to be able to intelligently set up a Stop loss level for each single trade.. Stop loss levels are not fixed levels and should vary from trade to trade depending on appreciation or depreciation of your total capital.. There are few Software packages which asses risk of each trade and set your stop loss levels if you look for them on the web.. ( decision pro is one of them )

If you fail to asses the risk of each trade you never know the Minimum Exit levels for your capital to grow in long term….

If you are a skilled technician concentrate all your efforts on razor sharp Entry to reduce risk as much as possible…



Iraj
 

ChartMan

Legendary member
5,580 46
If you are a skilled technician concentrate all your efforts on razor sharp Entry to reduce risk as much as possible…

That's so true. If you find stop loss a drag or a slog or unpalatable, concentrate all your efforts on a good, safe entry. You'll find the need to apply a stop becomes much less. You STILL have to know where it's going to be though!!! The entry DOESN'T have to be razor sharp, that will come with experience. The enrty just has to be "safe" and sound.
The hardest part of this is having the patience to stay out of the market until you see the right opportunity. Intraday trading may offer that opportunity just once or twice during the day.....and it may only come towards the end of the day. That's one heck of a trial of your patience. It WILL be rewarded, but only to a few.
 

peedee

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341 0
Thanks for the reply Chartmam, from a novices point of view trading seems to be simplistic just as long as you stick to your own gaining method. (hope i am right) cheers, PeeDee.
 

peedee

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341 0
Chartman, to be honest i can not find an absoloute point of entry using volume, its just pure feeling. I would like a more mathematical entry but i can not envisige it. Any thoughts, PeeDee.
 

peedee

1
341 0
Hi Options, i know what you are saying, do you use volume charts? They seem like the best way to calculate entry points into the market, although i do not use any other TA. I look at the U.S. markets, in particular the dow, trading indices seems like an easy way to trade from a beginners point of view because they are easier to keep track of. PeeDee.
 
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