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NEVER. I NEVER use stop losses. Reason being is I'm a Scalper/Swing trader and found no need or gain. I use stop losses to fasten a large win. . I.e to test the profit or market when I'm already winner of a significant amount of pips so that if the stop strikes I already profitable.
Are you taking'signature' trades off these levels or would you wait to find some price action? Do you use a trend filter?
Replying belatedly....
Is Dependent upon your approach. For grid and trend traders, agreed, entries are somewhat less important. And your remark about needing an advantage, is (IMO) universally applicable.
But in my case, while I trace your points (2) and (5), the way that I trade, (low risk) entries are critical, which means tight stops and higher R:R trades.
I made the chart below from TheSnowman (hope he doesn't mind). The white lines that I added reveal how resistance...
I have slowly been practicing signature trading in these levels with limit orders. I get a lot more sleep today.
You're talking about monitoring stops.
Scalping without stop loss - what if price goes in wrong direction.
Price goes in wrong way? Not a really big deal it happens a lot, Since I'm there in the current entering and exiting trades when it goes against me just exit out of this trade straight away with only a couple dollar loss then enter in the direction of the transfer and usually it retraces back if it is a sudden leap or decrease. If that is the case then for a couple dollar loss you gain more since You've Got the chance of scalping in the direction of this movement it shoots AND THEN once again an oppurtunity to scalp the retracement (in case it will )
such as an elastic it occupies It Is Going to take down and vice versa I'll
The principal question is if you can escape from dropping position. I heard best traders don't have stop losses but have no trouble getting out of the market while in losing position, they have stop loss. This is tough to do psychologically and not many can do this, and this require a lot of time.
Stop losses are very hard to define on a limited time frames. What makes them even harder is how it takes time before price eventually increases the momentum to reach your TP.
From what I have seen up to now,
the tighter the stop loss you put the more trades you loose.
The broader (with respect to resistance) the greater risk:reward ratio you need
My urge to whosoever requires it is that.
Exactly what MACD historgram for departure. Direction you trade is still secure, if the bars doesnt sort against you. But it is still important to get a good risk:reward ratio. There's nothing as irritating as permitting a transaction to take a couple of days worth of profit.
Trading with no stops is like driving a car with no braking system.
How could you possibly drive to a destination without breaking up?
Traffic requirements never stay the same like the ever changing market conditions.
Imagine an ever quickening automobile on the street, do you want to try riding on it?
Consider it
I think if you're playing on long positions it may very profitable, but keep your hand and better to use sl as it will down!
I favor short positions but occasionally It's going not in my way so I have to wait long time when it will be in
. .has benefitted the slumping my account within two months. I very much also follow the philosophy in regards to the Forex market which, what goes up must come down I consider myself a trend trader. I wasn't profitable before not placing hard stopss and I have read a ton of literature and had what most would call a reasonable share of experience on the market from speaking to a few traders. Mind you, everybody has there own method of trading but I feel what it boils down to is whether you reach your targets or targets that's all that matters and can adhere to a plan.
Trading with no stoploss to me is like getting out of the way of the prevent hunters and playing on others emotions.
Yes, however, the problem is sometimes it does not come down for a really very very very long time and from the time when it did come down, one may not have an account left. But there is nothing more frustrating than with a nice profit run cut short by prevent predators.
The trick is knowing where really a stop ought to be set.
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