Actual data supporting no use of stop losses

Discussion in 'Trading' started by wxytrader, May 11, 2024.

  1. Yes but over time the math tells me that is a losing prospect.

    100 shares @ $30
    Avg down 100 shares @ $25
    Avg down 100 shares @ $20

    Shares: 300
    Avg price: $25
    Pnl @ $30 = $1500

    Versus stop loss:

    100 shares @ $30
    Stopped out @ $25
    100 shares @ $25
    Stopped out @ $20
    100 shares @ $20

    = -$1000

    Shares 100
    Avg price: 30 (100 *20=2000 + 1000= 3000/100=30)
    Pnl @ $30 = 0
     
    #61     May 14, 2024
  2. Who? He's made so much money in trading that he's going to share his secrets with all of us for free???? Oh wait he's charging money lol.
     
    #62     May 14, 2024
  3. deaddog

    deaddog

    LOL Funny math LOL
    What about the times it doesn't recover?
    What about the times it takes off to new highs and you only have a partial position?
    Different strokes as they say. I'm not comfortable with drawdowns so I keep them as small as possible.
    How long are you willing to let the position sit underwater while other opportunities present themselves.
     
    #63     May 14, 2024
    rb7 likes this.
  4. lol

    You think Steve Cohen is selling courses?
     
    #64     May 14, 2024
    SimpleMeLike and rb7 like this.
  5. As Noah said what's he going to teach us how to open up a hedge fund and then get privy to all this Insider knowledge? Lol
     
    #65     May 14, 2024
    NoahA likes this.
  6. upload_2024-5-14_15-33-7.jpeg
     
    #66     May 14, 2024
    rb7 likes this.
  7. rb7

    rb7

    LOL...
    You wouldn't be able to convince a 6 yrs old kid with that example.

    There are more than one ways to make money with trading (not investing!). Good for the ones who can make money without Stop Orders.
    But saying that one way of trading is stupid is just another way to show to everyone how clueless you are (or show I say closed-minded).
     
    #67     May 14, 2024
  8. One example is clearly better than the other. Lol
     
    #68     May 14, 2024
  9. Good Morning NoahA,

    Agree. Steven Cohen made money by cheating.

    He an edge that makes money each trade with no losses.
     
    #69     May 15, 2024
    MarkBrown likes this.
  10. Here, wxy, discuss:

    [​IMG]
     
    #70     May 15, 2024
    Wide Tailz likes this.