How many at ET set their stop loss according to the charts/market and how many set it according to their account balance? What is your particular preference?
For swing trading, I use a combination of the two thanks to position sizing. In other words, I pay attention to both. As I do not want to lose more than 1% of my account per trade. if the stop based on the market implies a big move, I reduce my exposure/size and vice versa.
Do you skip trades then that aren't within budget and if so, is that a difficult decision especially when you feel strongly about the potential?
No, I would just have a small position. I understand it is a conservative approach, but it enables you to preserve your capital. Less risk, less reward. But this is the best way to trade for me, mentally. I hate big losses. I do not like small losses but they do not deplete mt account too much.
Yes I agree , a smaller position keeps you in the game. I think the losses are what need to be managed and the winners take care of themselves (for the most part)
Not using stops may make you money on many trades but eventually will be a disaster. Stop loss I use is based on the charts. I know that 1.5% is the max % of my account I am willing to risk on a trade. If I can get outside the noise with that stop I take the trade. If I can't I'll wait for a better entry or pass on the trade. The extremely difficult thing for me is how the exit. I came in this morning long ER and ended up selling at 722 around 10:00 (3.6 pts below the highest bid) Exits are tough. Maybe wait till 9:40 and if ES breaks 9:30 LOD sell or just sell based on a % of 9:30 gap gets filled sell. Would love to be able to hold a few days what seems like a good entry but I can't stomach this much of a pullback. Well SPX up 4 pts Dow up 50 and ES making new lows Well I'm done for today don't want to give back any of my gains.
When you say "outside the noise" , what exactly does that mean. Let's say if you were looking to short--