I'd like to get an idea how many NQ points people are using in their trailing stops, please participate! LP
Most of the good traders I know (not all...but most) are NOT USING FIXED STOPS when trading the Eminis. Regardless if they are trailing stops (adjusting stops when your at a profit) or initial stops to minimize the loss if the trade goes against you as soon as you enter... fixed stops...in my opinion...will cause more harm than good. The worst thing traders can do is to apply the same general fixed stop/loss protection methodology to different types of trade setups or to the same trade setup that appears at a later time. Example of a general stop/loss...always exit at 1 point loss or always exit a 2.5 point profit. Or always use a 1.5 point trailing stop. Note: If your successfully trading via using fixed stops...more power to you. I truly believe that good traders understand that each chart parttern is different than the same chart pattern that appears on a different trading day or at a later time in the same trading day. ________________ For example only...lets say your favorite trade setup out of a few is going Long via a BreakOut above an Ascending Triangle. Not every Ascending Triangles are the same. Each will have different resistance and support levels...different wiggles. One AT may require taking a loss at -1.5 points because thats a tick below the support for that paticular situation. Another AT may require taking a loss at -0.75 points because that's a tick below the support for that particular situation. Another AT may require taking a profit at +4 points because that's where the nearest resistance level is at. Another AT may require taking a profit at +2.5 points because that's where the nearest resistance level is at. Another AT may require using the support of the 5eMA as a trailing stop based what price has previously been doing all day just prior to your entry. Another AT may require using the support of the last resistance level that your profitable trade passed through...if your Long... or the resistance of the last support level that your profitable trade passed through...if your Short. Further, you don't have to use support/resistance levels...you can be using Bollinger Bands, Candlesticks, Price Moving Averages and any other indicators. ________________ Therefore, to use FIXED STOPS (trailing or initial)...more likely than not... will not allow you to be flexible enough to exploit your trade setups because every trading day is different. Therefore, to not only survive as a trader...but to make a living at it...you and your trading methodology needs to be flexible. Flexible enough to let your profits run while minimizing your losses. FIXED STOPS are easy, simple to use and helps traders to keep it simple. Yet, keeping it simple may not always be the solution. NihabaAshi
I always use a hard stop, but adjust it to the trade as in the previous post. Using a stop takes all the stress out of a trade for me, which helps a lot imo. Jay