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

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

  1. achilles28

    achilles28

    Me too. Russian roulette trading without a stop in a potentially fast market, imo. Especially true for us scalpers that trade on high leverage and can get wiped by a huge spike.
     
    #501     Jun 19, 2013
  2. cornix

    cornix

    Furthermore, I WANT to be stopped out of losing trades, because there's no single reason to hold losing trades even a tick more than absolutely required minimum.
     
    #502     Jun 22, 2013
  3. emg

    emg

    placing stops are for loser. small traders need to place because they are poor. in the end, small traders lose.



    More than 90% of small traders lose! They just lose!
     
    #503     Sep 11, 2013
  4. Visaria

    Visaria


    How's it going, friend?


    Us traders place stops to manage our risk, emg. Nothing to do with whether we are poor or rich.
     
    #504     Sep 12, 2013
  5. A stop, more appropriately called "take loss", does not "manage risk".

    Just a means to stack up losses. And effective for that.
     
    #505     Sep 12, 2013
  6. dev

    dev

    Yes, some trades lose. The stop is simply recognition of the stats within your method, and acceptance of sound risk management.

    While placing stops assures some losers ( hopefully small ones) - NOT placing stops assures rare but big losers.
    Like, tidal wave losers.

    Using your trade stats - or market action - or market stats - if you cannot see a sensible place to put a stop, then I suggest your trading method is poor, and sooner or later you'll hit the chamber with the live round in it.
     
    #506     Sep 12, 2013
  7. Visaria

    Visaria

    Ok, if you don't use stops, how are u managing your risk?
     
    #507     Sep 12, 2013
  8. dev

    dev

    As an ex-short term mean reversion player, fully automated - I can assure you that a stop is a necessary evil. Yes, you can rack up profits very fast with extremely wide stops/ small profit target.

    But when it goes wrong - and it does eventually - it can bring account devastation on a spectacular scale.
     
    #508     Sep 12, 2013
  9. It's certainly a necessary evil for those who don't know a better way to hedge.

    Nobody says one has to trade "without stops", in the sense of "without protection". What is meant is that <b>there are much better and intelligent ways to hedge within a folio</b>.

    Using "kiss" approaches like open/take profit/take loss (improperly called "stop"), does not lead anywhere, and just delays a little the liquidation time, keeping people entertained, and brokers happy.
     
    #509     Sep 12, 2013
  10. Visaria

    Visaria

    Can you elaborate pls?
     
    #510     Sep 12, 2013