Do any of trade without a stop loss? Is this something that can be done and still be successful?
Haha, you’re the man/woman!
Here’s one
Yes, but it is I’ll advised to trade without a stop loss.
Here are some ways you can trade without a stop loss and still be successful.
The first one is to have a mental stop loss. Instead of entering a stop loss on the trading platform, you will close manually if the price moves too far in the opposite direction. Although, you are only technically trading without a stop loss you still have to cut the trade in case of the price moving against you.
The second is to Trade in very small amounts to withstand large adverse price movements. For example, you could trade lot sizes that wouldn’t exceed 1 or 2% loss of your account at 3 times the average daily range. Its unlikely that price will move adversely against you three days in a row at 3 times average daily range. If after 3 or 4 days the trade isn’t showing signs of working out, you can cut the trade.
The issue with these two is that you won’t have any safe guard against flash crashes or black swan events.
The third way is to hedge. this involves taking an opposite position in the same or a highly correlated instrument to limit equity draw down. You can offload the hedge trade at the bottom or top of an adverse price movement for profit and ride the original trade back to break even or in to profit too. Making money from both directions. This is a skill to be acquired in and of itself.
The common denominator among these options is that you have to decide when a trade is not working out. Then do something about it.
Trading without a stop loss should never become trading to never accept a loss or not doing something to limit losses.
Not accepting that a trade is not working out and hoping it will come back without a stop loss is recipe for disaster.
You can do whatever you want. The attraction of the markets is total freedom from bosses, spouses, governments, parents etc
It’s probably the first time in our lives we have this - and is the reason why most fail!
You need rules in life and you need rules in trading if you want to succeed.
So yes you can trade without a stop but you are not likely to be trading very long.
Incidentally the reason why you are unwilling to use a stop is because on some level you are not willing to accept losses are part of the game.
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Yes you can trade without stop loss but it is very dangerous because basically you remove protection from volatility if you increase leverage and trade with bigger lots.
It is possible to trade without stop loss, but it’s also possible to blow up your account. Although stop loss orders are not perfect at protecting your money from excessive loss most of the time if your trade idea was wrong it will stop you going too far into drawdown. Personally I would never trade without using both a stop loss and a take profit order.
Great advice here.
I have never thought about it this way. So much freedom we literally don’t know what to do with it when starting out.
yes if you stare at charts all day.
You may sometimes hear about traders who trade fact, some traders are opposed to using stop-losses at all. These traders rely on Forex no stop-loss strategy to bring them profit. Some of them do succeed, but the majority don’t. So, it is totally up to your research whether you want to opt for it or not.
Yes, it is totally possible to trade without a stop loss. Being objective and trading in small amounts is definitely helpful. Hedging is another way you can go about without a stop loss.