Hi emg, i was lucky today and was short CL just before the mini crash. Covered near the lows!!! How's your trading doing?
the real problem with stop loss is once it is hit, traders think the world has come to an end.. they lack the guts to get back in one way or the other.
If you make money on the first trade. good. stopped out of the second trade. likely breakeven, since most futures traders get out after +2 and stop at -2. third trade is the kicker....if they lose, odds are they need to have the next two trades winners to be profitable after commissions. same logic for days of week. if lose money on Monday... they will likely have to be profitable 2 days in a row to not go broke. if 2 days during the week are unprofitable, 3 straight days of gains might not get them out of the hole. solution? watch all week....do maybe 1-3 trades. risk 5 to make 15. or risk 10 to make 20.....
Why not trade with a tight stop loss, but be on the right side instead of the side EMG somehow guessed everyone should be? TA pointed the low risk entry just a minute before the crash.
Trading with stop-loss in the futures market is for losers! Trading withOUT stop-loss in the futures market is for BIG losers!!!
Cannot agree more. Trading means finding the optimal balance across all your algo parameters. In an ideal world, you wouldn't need them, but no system is perfect, so they are indeed essential. Those who claim otherwise probably don't know what a 2-percent drop means for an e-mini futures trader...
Here is an interesting article: http://www.chicagotribune.com/busin...-data-leak-20130424,0,4124230.story?track=rss HFT will stop small traders out. HFT will blow small traders far away. More than 90% of small traders lose! They just lose! http://www.bloomberg.com/news/2012-...-seen-profiting-at-small-firm-expense-1-.html Chickens (small traders) are coming home to roost