How do YOU decide where to place YOUR Stop?

I never said dont limit your loss. i said think of another way to do the same thing as your stop.

 

you would buy the same dollar amount NOT share qty. but dollar amount in an inverse etf. got it.

 

yes

markets do inexplicable things very often.....you have to allow for all contingencies

 

Place STOP where nobody can find it!

 

you are a genius!

 

No!

The real genius is trader Bruce Kovner interviewed for the book Market Wizards. He is a trend rider. So am I.

Bruce started off by placing his stops at 5%. That was quickly adopted by Ed Sekota, Finance Professor Charles Bassetti at Golden Gate Univ. San Fran.

I used to place mine far away, usually right under the 2nd last minir wave low where Goldman Sachs would likely not look. But Bruce said, "go 5% so I did". Sleep like a baby as my loss is calculated on day 1 before pulling trade trigger. Its a loss I don't give a rat's ass about losing.

That's the deal


The genius is Bruce Kovner

 

Indeed you are a genius.
Very sensible suggestion.

 

That sounds like hedging to me. you will neither loss nor gain, whey not just accept the loss and move on?

 

everyone knows-at least the big boys- where your stop is .....so i have to modify your advice a little bit: place stop where it will be too expensive for them to run it

 

hedging is very beneficial to trader who is an expert one.....most less accomplished traders do not really know when to remove the hedge.
for these traders better put a stop -IT DOES NOT MATTER WHERE
BUT for god's sake use the same technique to put the stop:if it is a tight one or a wide or below support or above resistance....do the same thing every time: then over the long term it will even out.

and be well enough capitalized or trade small for your capital so you can afford to take a few stop hits in a row.

eventually learn about the market movements so that you do not need a stop-it took me ten years to achieve this.

i know some will call me mad...but market moves are very predictable because traders will tend to buy / sell at the same place....