Article Why Don’t We Keep Stops?

T2W Bot

Staff member
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With everything said and written on the subject of stops, it should be given that everyone is conditioned to keep them religiously even before they start trading. No matter what source a newer trader turns to, utter importance of stops will be underlined and emphasized up to the degree that keeping them is heralded as the ultimate key to success. We all heard adages like “Take care of your losses, profits will take care of themselves”.
Do all the stern warnings work? Not really.
Time and again traders blow their stops, widen them in a course of a trade, hold losing position in false hope it will make them whole. If this destructive behavior continues despite all the warnings, there must be deeply rooted reasons for this. As with most trading flaws, failure to keep stops roots in fundamental misconceptions about the very nature of the market and trading. Such misconceptions cause incorrect psychological makeup which, in turn, results in behavioral patterns harmful for a trader’s...
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Rhody Trader

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2,620 264
In this article, author Vadym Graifer talks about how stops are great things, but only if they are used as part of making good trades.
 

SOCRATES

Veteren member
4,966 134
Very Good, I wholly approve, and completely sympathise with the sentiment....However....Valid and well meaning as it is, and indeed well written, the message delivered therein is inevitably doomed to fall on deaf ears yet again.
 
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Vorbis

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270 35
Excellent article. The is first to which I've given a 10.
 
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Grey1

Senior member
2,186 177
Good solid sound advise. Nice one
 

c6ackp

Well-known member
441 28
Excellent - I like the analogy with breathing - inhale (take the trade) & exhale (take the exit) - fast day trading of very volatile markets feels just like this.
 

Tuffty

Well-known member
442 8
Why Don't We Keep Stops?

Quite likely the simple answer is that "We" hasn't had a big enough loss that really hurt enough so taught the lesson properly.
 

FXSCALPER2

Established member
964 280
I have never met anyone one who doesn't use stop losses. Maybe I need to get out more. What I find very common is tight stops. I know people who try to make money trading GBPUSD with a 30 pip stop!!
 

Chicken Curry

Active member
148 6
Very good article indeed which I would expect from the co-author of "Techniques of Tape Reading" which is an excellent book.
 

TraderPattern

Well-known member
339 7
Thank you Mr Graifer. Your points are well made and are broadly in agreement with my overarching trading philosophies. As a result, given that you make fairly good sense, I pleasurably gave your article a rating of 10/10.

I look forward to more such confirmatory articles from you, which are in broad agreement with my trading intuitions.

Best wishes,
TraderPattern
 

TheMoneyMachine

Active member
113 4
FXSCALPER2 said:
I have never met anyone one who doesn't use stop losses. Maybe I need to get out more. What I find very common is tight stops. I know people who try to make money trading GBPUSD with a 30 pip stop!!
You obviously do not put enough emphasis on the accuracy of your entry then, i never use a stop exceeding 30 pips on GBP/USD.

Regards

TMM
 

wasp

Legendary member
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I personally don't know many traders who use stops larger than 30 pips, I normally use less.
 
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darktone

Veteren member
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Stop size is relative to time frame and entry style!:rolleyes:

The most important fact (and the whole point of the article) is that you have an exit plan for all outcomes...... and stick to it!
 
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