No offense, Mr. Yahoo, but I guess you have never actually traded in that type of environment. stops are blown right through, your inexperience in the real world is getting more clear. by the way, are you that astrologer newsletter guy??
couldnt agree more, when your in the chart and reading the flow on a 1min chart, watching and anticipating the stop runs etc etc etc statistics and letting trades run away dont even come into it lol
I personally enjoyed the OP's posts. I hope he continues despite the fights these other traders are having. They are basically debating religion here. There's no right or wrong answer to the stops question. And you telling another person he's an idiot for not believing in your idea of how stops are used is just plain immature. Guys grow up. And OP, continue writing. I like your ideas
For those not suffering from tunnel vision let's dig a little deeper and see why those 5 keys work at making a better trader. To trade with any degree of success you need to have lots of confidence but at some point that confidence will be tested to the hilt. One of the things I get traders to question is, what is your confidence based on because over confidence can sure disappear like a vapor when a system hits a losing run. That's when the psychology books come out but really it all stems from flaws in technique. If you have confidence in someone else's stats from a book, well done! You're a real hero. Let's say your stops keep getting blown so you conclude stops are for losers â who is the loser? Really you're saying you are. You're a loser at knowing where to place a stop. Digging deeper that means you are saying that you don't know where the quality reversal signal is so you prefer to place the trade and let it work relying on past stats to make a profit. That might work for years but all systems go through bad patches and that's why I have no interest in systems. Been there, done that and got the tee shirt. The hedge funds are great examples of this. For years they were high fliers but then the markets changed and many of those that kept confidence with their system crashed and burned. So the stop issue raises more questions than are stops a good or bad. For me stops are a must but if you are a system player stops might kill you because you are looking to catch a ride on a trend and need swing room. The question is not are stops for winners or losers because loses are losers with stops and without stops. Stops just prolong the losers death, that's all. The real question raised by the stop issue is, are high quality reversals with low probability of stopping out possible or are all âgoodâ set-ups equal so just let the thing wiggle into a profit? If you have the ability to distinguish high quality from poor quality signals then there is very little to lose with a tight stop as most often they don't get taken out. Quality signals, quality trades, quality results with confidence based on control and not stats. Then if the fur hits the fan and the security chiefs say that's a when and not if, the traders with the stops will be ready for the next trade with no regrets. So my take is, stops are not the enemy. Here are some of my enemies... *Not distinguishing quality from mediocre set-ups is my enemy *Trusting past performance mechanical system stats is my enemy *Believing I'm right when the trade is in the red is my enemy *Not knowing where to place a stop so it seldom gets hit is my enemy *Not being able to read the market is my enemy *Mechanical entries are my enemy Most traders won't put in the homework to discover the solutions but if you are an adamant no-stop preacher, please, please, keep preaching coz honestly, I love it. The rest of you will find the solutions in the 5 Keys.
That is a good one The OP has interesting posts and is not posting with any vitriol. It is possible to have different opinions without rancor. It's up to the individual to accept/reject what is said anyway, and inflammatory defamation isn't a good persuader.