Wide Stops

[gtspeed]

Hi All

Hope you are well and enjoying the ups and downs (ohhh err missus)

Just a thought on stops , I often hear " I use a wide stop" or "I use a use a tight stop" however if day trading what is considered a wide stop. I personally use a 20 point stop but still get stopped out very regular and I always thought that my stop was quite wide. What kind of stops do you guys use ?

 

[Dowser]

What do you trade? I use a 25pt stop on the DOW

 

[foroom lluzers]

I don't use stops on longer term trades , just use options approximately 500 ticks away /500 pips away as protection.

The stop loss is for making buckets rich.

 

[Pat494]

You could think of one based on bollingers or envelope i.e. a bit flexible.

 

[foroom lluzers]

Hi All

Hope you are well and enjoying the ups and downs (ohhh err missus)

Just a thought on stops , I often hear " I use a wide stop" or "I use a use a tight stop" however if day trading what is considered a wide stop. I personally use a 20 point stop but still get stopped out very regular and I always thought that my stop was quite wide. What kind of stops do you guys use ?

depends on volatility of instrument , in choppy markets , 20 to 30 will be hit and price will go in your intended direction , after taking you out and leaving you with loss plus a re-entry and double target to achieve , to make up for losses.

 

[Dowser]

depends on volatility of instrument , in choppy markets , 20 to 30 will be hit and price will go in your intended direction , after taking you out and leaving you with loss plus a re-entry and double target to achieve , to make up for losses.

Are you seriously suggesting that if you take a loss you should double your profit target on the next trade?

 

[piphoe]

the market doesn't care you lost your last trade and you need to double down

 

[foroom lluzers]

Are you seriously suggesting that if you take a loss you should double your profit target on the next trade?

no .I just said after every loss , you have to achieve more to be profitable

http://www.trade2win.com/boards/first-steps/54890-why-high-probability-trading-so-important.html

 

[itspossible]

the market doesn't care you lost your last trade and you need to double down

0114 262 0026
Gamblers Anonymous, Phone

 

[Dowser]

no .I just said after every loss , you have to achieve more to be profitable

http://www.trade2win.com/boards/first-steps/54890-why-high-probability-trading-so-important.html

OK fair enough

 

[itspossible]

When you enter a trade you enter for a reason and immediately put a stop on .If your scenario is wrong and the market is not going as expected you are WRONG.You must now pull out and lose money.Do not hope,pray and wish it will turn around .just take your loss.You must give a little wiggle room hence the stop-today is an excellent day to short the ftse at some point.time it as best as possible and put in a 50 stop loss.try and take something out of the market though-25 points plus.you are trading with momentum TODAY.

 

[gtspeed]

What do you trade? I use a 25pt stop on the DOW

Normally the DAX & FT100

 

[Dowser]

Normally the DAX & FT100

You use a different size stop on these instruments right?

 

[piphoe]

0114 262 0026
Gamblers Anonymous, Phone

i called...they asked for my pizza order

 

[gtspeed]

You use a different size stop on these instruments right?

No kind of stick to a 20 point stop ,

 

[Dowser]

No kind of stick to a 20 point stop ,

Do you find you get stopped out more on the DAX than the FTSE?

ATR of DAX is double that of FTSE

 

[tomorton]

There is always lots of discussion about stops amongst day-traders. These lead naturally on to questions of r:r, win rate, trading without stops, wide stops, tight stops, doubling down and all the rest. When these techniques fail to work for the majority of day-traders, they turn to dark thoughts of rigged markets, stop-hunting, spiked prices, bucket shops etc.

There is almost no discussion amongst multi-day trend-followers about where to put stops. Because the TA decides for you.

 

[gtspeed]

Yes the DAX can be a bugger but I find the FT100 is the trouble as the DAX normally brings in a better return when I get it right

 

[Dowser]

Yes the DAX can be a bugger but I find the FT100 is the trouble as the DAX normally brings in a better return when I get it right

If it works for you mate - good stuff