"No Stop" Forex Trading?...been hearing a lot about this?...anyone do it?...could it be the best way to make money trading Forex? instead of being stopped out...
If you mean "non-stop", I find when I'm tired I don't always make the best decisions. But trading without placing a stop loss order? When I'm in front of my computer I don't bother putting a physical stop in. But if I want to sleep and keep a position overnight or am very busy, then I will put in a stop. By the way, Ed Ponsi showed results from a demo account in his book Forex Patterns and Probabilities where he showed what would happen if you never cut your losses and only took small profits. There were many consecutive profis followed by a blowout. That kind of reminds me of the people who make money at the end of the 1990s. Some people never cut their losses and simply waited until prices bounced back up to take a profit. Eventually, some blew up. But, had those same traders changed directional bias and shorted the markets instead, well, maybe they wouldn't have blown up.
here is the deal...I am currently demo trading a system with no stops at all...the success rate is amazing...finding that with adequate capital and a real sense of where it is heading...enter the trade and do not set a stop loss. Because of the success I am experienciing via demo without any type of stop...makes look real hard, real hard at all my losses when trade Forex with real cash $$$.....I've just let them run...and whether take 1,2, hours :30 minutes of 12 hours...Forex prices 'seem to cycle' back or up to levels if you have a right sense of where to enter...bottomline...it seems the bigger issue is having more $$$ in your account and NOT having a stop as a better relaxed approach to trading with a stop...just what I am seeing...different way of thinking...that being 'without stops'...thanks for your insight and comments...
When I looked at hundreds of charts for hundreds of hours I noticed retracements are usually smaller than the moves in the overall direction. So, I think a trend following approach is more realistic. But also, let's say you look at a weekly candlestick chart and see there is a trend. And let's say you develop a signal to enter a trade that may only occur 3 or 4 times a week. Let's say you had a retracement that lasted several weeks. Well, if you cut your losses quickly every time you took a loss, chances are likely you'd make up all your losses and more once the trend resumes. And if you cut your losses fast, you'd be able to risk a much higher percentage of your money on every trade.
It's a funny thing watching a woman have a baby... She'll huff and puff groan and scream call you every name in the book and swear she'll never have another child ever..... THEN..... when the doctor hands her that wrinkled up little baby it appears she never thinks about what she just went through ever again..... She glows in motherhood, cries, smiles, cuddles her little baby and protects it for the rest of her life.... It's a funny thing watching a demo account drawdown 2 or 3 thousand dollars for 2 or 3 days ..... while I'm waiting on the market to prove I have a "real sense of where it is heading" ......THEN.... when the position turns my way....... and at $12.50 a tick my account crawls its way back up to EVEN...... I never think about the guy who profited during my 2 or 3 thousand dollar drawdown or the guy who profited during the 2 or 3 thousand dollar move back up to GET ME TO EVEN .....ever again. I just glow in the thought that I AM a great trader and I have a "real sense of where it is heading" and I had "adequate capital" to wait for the market to prove.... I WAS RIGHT... I believe, as traders we have as many views of the market as there are price changes.... I dream of having George Soros's trading account so I could enter a market, like he did and load up on positions..... and when I'm down $200,000,000.00 (that's millions) like he was... bail out ... like he did.... (I guess he HAD A STOP) and look for another opportunity ..... Trading without a stop, I can't even dream of it !!!! But that's just me <*)))><