what is a stop? stop is an exit from the position which exhausted its possibilities everybody exit positions like that, sooner or later some people use stop orders in advance (not a preferred method for a daytrader), others put orders manually as the situation develops
I never exit a position win lose or draw based on price and if I had started out that way I would still be a young man
it does not matter based on what you exit it... as long as you exit it - you get stoped by the market
semantics, in that case there is no difference between a stop and a profit target, and I use neither. You know, some people take profits or losses based on other things than the market. Like a daughters wedding, or a college education, or a retirement home. (or in my case beer and cigarettes)
yes, there is no difference, stop is an exit, and what one exited with: profit or loss in each particular case - does not matter...what matters is a result of the series of exits sorry but that is dilettantism i am talking about professional approach
o no actually, that is money management. Over the years I got lucky on nothing more than the mantra "Cut your losses short and let your profits ride" and at times I thought was a very good stop setter (since that's all I cared about, I had very little interest in my profits), but in the end it just became more money management, and stops were based on nothing more than how much to risk? And it came out about the same. And to this day I don't know if it works or if I just got lucky. But I doubt it enough today to no longer play that game with serious money. It's amazing how much better things go when you are willing to lose it all.
"as the situation develops" so this means that a trader has to remain in front of charts the whole time his trading positions is open .... interesting!!
Only if your intraday/scalper, swing traders ofcourse not. Scalpers think we all scalp and swingers (yeah baby) think we all swing.
IMO, that depends on the instrument and how much you're willing to lose. For me, I can employ either strategy depending on the market.
depending on the method, on the timeframe(s) used, etc etc bottom line is: who is watching the market and properly and timely reacts? it can be automated method , or it can be the trader, but somebody or something should be there