I didn't say you hold positions overnight, my post was in reply to a post from peilthetraveler. You might want to review your thinking on stops though, and trading itself. Capping 'maximum pain' isn't what stop losses are all about, they're a simple risk management tool is all, and losses should never be painful anyway. Also by looking at higher time frames when a trade isn't working out on the time frame it was planned on means you're either not planning trades or you're changing your plan mid trade. Neither are a good idea.
Not me, in the scheme of things I'm a novice! You're the extreme trading cat around here, even Soros is in awe at how many markets and instruments you've traded......you're THE man!
I'm needing these answers right now from many that read this: 1-who here...thinks it is totally crazy to trade Forex with no stop loss in place? 2-who here...thinks it is totally crazy to trade without stop's and go to bed with open positions? hmmm...
My answer is in the thread, grasshopper. Remember..... Tomorrow always comes, and today is never yesterday. Eggs cannot be unscrambled.
Some ideas, to hedge the trade with another currency instead of using stop. For example, short GBP/USD, long EUR/USD. Could use more contacts on side that you believe in. Or another option, trade with stop but no profit target, see what 2 days in a trade may bring in regards of return so trying to hit home run and keep stops small. Or have a reverse trade setup, for example, you short GBP/USD with 10 contracts, your stop is set with 16 contracts, so if proved wrong, you are now long 6 contracts, then set that trade to reverse again with say 2 - 3 contracts short if you wrong again so each time you are wrong, your number of contracts decreases. Once you win, you go back to normal contract size.
Actually between that 132 pip loss and 227 win, i was just barely up. I had 3 lots with the 132 pip loss and 2 lots with the 227 pip wins, so in reality it was like i had a 60 pip win really. But between 4:18 am and 10 or 11am, I added another 116 pips so it was a pretty good day. On a normal day, i usually win or lose 30-50 pips over the course of the day. My average win though is around 17 pips and my average loss is 21 pips, but of course, my win rate is 72% last time i checked it. Basically you could say that for every 2 dollars i make, i will give 1 dollar back.