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tom123
Registered: Jan 2008
Posts: 173 |
12-07-08 03:15 AM
Now, if you are trading without a viable strategy that defines your entry and exit, then you should not be trading at all and that is your biggest risk right there!
thats exactly what I was trying to get at, ML. good posts
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tom123
Registered: Jan 2008
Posts: 173 |
12-07-08 03:25 AM
Part of the reason why I'm interested in this thread is because this risk issue,and risk aversion, was my biggest problem I had to overcome and I just recently achieved that. I was setting all my stop loss at 3 or 4 pips, trying to perfectly time my entries. I got pretty good at finding the right entry moment, which ,in forex, meant I was eeither right on the minute, or maybe 2 or 3 minutes early...and that was pretty good...but even in doing that...the basic price action was zig zagging up and down as it does, and my 3 pip stop was getting hit 90 % of the time. thats exactly what some poster said with the phrase death by 1000 cuts. thats what happened to me. and in fact its exactly what I lost in dollars until I finally learned how to use the stop loss tool correctly. and started learning how to trade correctly. As I said, for me, the real stop loss is to have a complete understanding of the analysis, ahead of ever pulling the trigger, and knowing what to look for in either direction if the trade does not prove correct.
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vrtrop22
Registered: Oct 2008
Posts: 166 |
12-07-08 03:26 AM
I don't think type stops work for a lot of reasons. I trade the ym, dax, and ftse with 10 to 12 point stops and no trailing stops. I found anything less would get you stopped out routinely. I have a question though. Where does this 98 percent of day traders fail non sense come from. If I call myself a day trader does that mean I really am 1. How long were surveys done for and from what year? Were they stock or futures traders? I hear the swing and long term guys constantly bash us day traders and throw out the facts from who knows where. I would think the vast majority of swing and long term traders fail too at the same rates
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riskfreetrading
Registered: Jan 2008
Posts: 3885 |
12-07-08 10:14 AM
unless you undertstand what is wrong in your post, you will not be trading 1 year from now. i guarantee it.
ps: information is from brokers. they have the records. if you survive 1 year while trading, then you are already in the top 10%
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jjf
Registered: Sep 2007
Posts: 899 |
12-07-08 11:01 AM
Quote from riskfreetrading:
1. OP poses a fundamental question. If you have never posed it and analysed the answers, you have blown multiple accounts, or are making money by chance, and are most likely a deadman alive soon to blow up or die slowly.
2. All the answers here are right, but all are wrong.
3. Once you stop talking and are ready to listen and carefully read my answer to the question, I will provide it.
4. The answer is mathematically proven. We know that numbers and math do not lie.
5. The answer should be able to give the numbers and structure of why, how, and when to take stops or profits, and how long you should stay.
I will share later. I want first that you be ready to listen. Once I hear more ayes, RFT will chalk things up.
We are all waiting.
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