Quote:
Originally Posted by celticheart
............................
.............................
................................ I had 5 trades stopped out. ................................with each stopped out with set stop losses. In each and every one of these trades, if I had not set a stop, they would have turned around and gone into profit later in the day. .......
Started back up again last night, this time did not set any stops at all. Since last night I am +192 pips so far (closed trades). One of these trades went to about -80 before it turned around and went into profit. I have 3 more trades .........
. I am aware that at some point this may not work out, but it seems that it works out better for the most part with no stops (as long as you have enough margin, of course). .............
|
I will tell you what I tell many new people here.
There are 2 rules with stop losses :
1)
Never trade without a stop loss!!
2) Remember rule number 1.
Stop losses have not been invented just to irk traders!!
There is a good reason for their existance.
You only need
one trade to run away from you and you will lose your entire bank account!!
I did it as an experiment on my demo in my early days!
It may seem attractive to trade without a stop loss - but you are playing Russian roulette with your money!!
You are just gambling!
How do you do money management without a stop loss?
Answer - you cannot.
How do you set a risk/reward ratio and win/loss ratio without a stop loss?
Answer - you cannot.
I also recommend the setting of a PCI stop loss - power, computer, or internet failure.
These things do happen.
Without a stop loss, by the time you re-boot your computer and reload your program, you may get a margin call!!
The fact that you keep hitting your stop loss is not a fault of the stop loss but rather something wrong in your trading strategy.
Solve the trading strategy problem and your stop losses will fall into place.
In my thread :
THE JOY OF CANDLESTICK TRADING - a Learning Experience
I outline the use of Starc bands.
These show the likely range of your trading and allow you to set a stop loss
in a proper place.
Go there and learn if you so wish.
I especially recommend reading post #325 on page 33.
All the best!
