I think that some of you missed the point of his trading strategy. It appears that most of you are focused on the trades going against his Analysis in a big way.
I think he and I trade very similar, I don’t use a SL and I trade with a pip value of $100.00.
I use what I call a soft SL and my win rate is 98%.
I know before I enter a trade what I’m willing to risk, and I monitor my trades according. However, even more important than using a SL is the Analysis of the trade.
I won’t take a trade unless I’m 100% confident in my Analysis.
I’m sure many of you feel the same way, yet your trades still go against you. Well that explains why you still need to use a SL doesn’t it?
They don’t use SL because The Big Bank and Market Makers know for a fact where amateur traders tend to place their stop losses, and they push the market right to them every single time.
Why do you think that each time you place a trade the trade turns on you?
I don’t have any affiliation with the following video. For starters look at the youtube video by The Chapman Way, “How to Destroy The Market Makers”
I understand what is being said about the SL and certainly agree to move it past BE to preserve profits.
On the other hand I do not agree with no SL at all.
I use a very wide SL as a safety gap in case I miss something especially when low time frame trading. If these that have access to level 3 reporting when by my SL we would have very long runners.
When you realise that the big players know where you place your stop losses and actively seek them out you’ll stop using them and find another way to limit your losses, there are other ways.
There are many tactics you could employ. For instance, assuming you are putting a buy order in of .10 lots after you have done your analysis… Your stop loss might be 20 pips away. Instated of that put an order in for .02 lots in and another further away and then another etc… Not only are you not getting stopped out immediately, you are potentially getting a better price. A quick calculation can work out how far it could go against you before reaching the threshold of what you originally planned as what you were prepared to lose.
(apart from maybe salesmen with multiple accounts, who only show and promote the profitable one)
lol
those “big players” (whoever you imagine they are) aren’t even in the same market as you
they’re trading real currencies in a real interbank market; you’re just having a side-bet against a counterparty “broker”, there aren’t even any currencies changing hands, when you trade
We don’t even occupy the same table let alone the same room as a big market player.
Not sure what @Barrigan is referring to. If your trade gets banged out by your SL it has nothing to do with the market players. It even sounds totally ridiculous to correlate the two together actually.
There are plenty profitable traders exercising the use of a SL just because your style doesn’t fit that doesn’t mean putting an SL is some sort of “trick”.
It really doesn’t matter who you believe you’re trading against. My posts on this thread are suggesting that people can find other ways to limit losses if they find that they are constantly being stopped out.
I do not hedge, if a trade is going the wrong way I get out, I might enter the opposite way if my rules are met. I will not bet on loosers or add to a losing position.
Hedging isn’t for everyone, people often do it in an attempt to delay the inevitable out of desperation and obviously not everyone can do it because of regulations but I’m just suggesting that if you are doing the same thing over and again and it isn’t working then try something else.
