Using Stops

Discussion in 'Risk Management' started by retire45, Jun 17, 2008.

  1. I used to have trouble using stops... I felt down after the stop out as the "game" was over along with any chance of getting my money back from THAT market. I have found doing a lot of homework and having a steady stream of new trades waiting makes me actually look forward to removing weeds.. a.k.a. bad trades..

    You will be more likely to end a relationship before it becomes emotionally costly when you have other options.... The ability to say "don't let the door hit you on the way out" is a VERY good feeling.

    Hope this helps someone..
  2. When you put it like that it makes perfectly good sense (on many diffrent levels) and is immediately understandable and applicable to trading and life.

    The quicker you cut that "bad relationship", the sooner you can move on to the next one which will most likely be a lot better.

    This is an excellent reframing exercise, for many things in life, not just trading.

    Good trading.
  3. people have to keep in mind stops can be your worst enemy or best friend, in most cases for intraday traders they are your worst enemy.

    u need to have a good relationship between the stops and targets.

    stops line someones else pockets

    targets line your pockets.


  4. What I mean by a stop is a price or percentage at which you exit the position(s) without exception..
  5. There is a good video on how important stops are in terms of turning a system from from ok to good I think it confirms your point on how important it is to be unemotional about it and just get out. The number difference in the Net gain is pretty big.
  6. NoDoji


    In my limited exp I've found that using stops as planned, no changes midstream, is of great benefit to my profitability. In most of my trades, the overall downtrend continued after the stop was triggered allowing me to re-evaluate a better entry point if indicated. I've freed up my capital and can move on.
  7. mandy87


    the best way to limit the risk is to use the stop loss order.u can close the position at any time in order to limit your risks as much as you can and you will not only be able to limit your risk but will also be all to rise your profit.
  8. achhum


    Nice video, I agree place the damn stop and hope for the best. No need to start thinking"oh maybe another .20" it kills you ever time.
  9. larger range smaller size larger stops