Trading with a Stop Loss in the Futures Market is for Losers

Discussion in 'Risk Management' started by emg, Jun 20, 2011.

  1. BlueTurtle if you don t use stops you expose your self to massive losses once your strategy, whatever it is, doesnt work anymore. for a defined stop in % and a defined win rate ratio you can calculate your expectancy. it is that simple. high school maths. that you won not using them does not mean you will win in the long term..
     
    #421     Apr 25, 2013
  2. emg

    emg

    #422     Apr 25, 2013
  3. emg

    emg




    small traders just lose. "it is that simple high school math." and why do small traders lose? because they are using stop orders.



    To trade in the futures, the minimum capital requirement is $500,000. Recommend $5 million. 1 contract per $100,000. But, small traders do not have that kind of capital. They poor and lower educated. They have to place stop to lose while HFT whip small traders away. HFT are higher educated traders.



    all in all, u place stop to lose
     
    #423     Apr 25, 2013
  4. YUP. because they don t use stops. and they did not check the high school maths, which the HFT did...
     
    #424     Apr 25, 2013
  5. you do not need 500,000 to trade futures...

    but you certianly should never use more than 3/10x leverage (comes from the high school maths..).

    French index futures are worth "only" 37000€.. so 5k for 1 lot is good enough
     
    #425     Apr 25, 2013
  6. cornix

    cornix

    I use x25 leverage for conservative trades. :)
     
    #426     Apr 25, 2013
  7. if you have tight stops that s fine. the real parameter is the stop, not the leverage, but the higher the leverage, the tighter the stop..

    you need more experience then, ie more patience to enter right point and discipline to take losses early
     
    #427     Apr 25, 2013
  8. cornix

    cornix

    Yea, hard stop defined by stats. Just a few ticks as I day trade.
     
    #428     Apr 25, 2013
  9. pure scalper then? you use tick and 1min graph max? i do some scalping but usually prefer day trades where i aim to make at least 10 pips. i try to limit to 10x
     
    #429     Apr 25, 2013
  10. cornix

    cornix

    I prefer to call it intra-day swings. :)

    Small stops and larger targets mostly, trying to catch intra-day trends.
     
    #430     Apr 25, 2013