LOL! OK, this is getting interesting and exactly my point -- the rules ain't the same for every trader or trading system. It looks like: 1) stops work for ElCubano (and I know that others on ET have strongly advocated stops); 2) that stops do not work well for hedgez, redzuk, and me; and 3) that some (maybe everyone, like me, for whom stops have not worked) just have not found the right way to place the stop. That something so basic may or may not work (or may work only for certain types of trading) is what make trading so infuriating, challenging, and interesting. I love hearing all these lessons, but I would test the applicability of them to my own trading system BEFORE trading large with even the most popular trading rules. -Traden4Alpha
I think stops always work as long as you realize what they are supposed to do. stops are not for maximizing profits in the short term.
To use a stop loss for daily losses. Some days just aren't good for your methodology and its best to quit ASAP (or at least not trade the middle of the day for me). It seems like most days keep their same character all day, ie: small range, big range, trending, no trend, etc. If you can adjust early, you can make some money in most conditions. Today in the indexes, it was a big point gain for the day, but after the morning gap the ranges seemed small before they reversed. So seeing this early, I entered on pullbacks instead of breakouts and sold into previous resistance rather than riding the trend with stops. Managed to make money on a day where my normal method would lose.
The really hard thing about identifying what doesn't work is the fact that was doesn't work, actually works well less than 50% of the time. Everything works well at some time. Just not all the time. Runningbear
Trading off emotions - mainly Fear and Greed Trading out of boredom - entering without a signal Trading from the P&L - looking at my $ instead of L2 or chart and many more...Only when a trader succeed at getting rid of all of the flaws will he/she become profitable (consistently) imo
I just registered and this is the first thread I came across. I like the idea. Mine was that I thought I was a BRAIN. I mean I thought I was the best, got every winning tool in hand, refused to listen to anyone else, even for a while refused learning anything new. Watch out !!! This could be the end of it all. You can't fight or challenge the market. You're just a small dot in an endless trading sea. You have absolutely no power except when riding its waves.
starting with $7,000 in 2005 and turning that into $300,000 selling nakedfutures) gold options. Then coming up with the bright idea to switch to natural gas(futures) options were i had no experience. My Dum @ss was not aware this market could move up 1000% in 1hr. all ways use stops