thread: Trading without stop-losses

quote no stop loss trading as you can. There are many methods of accomplishing it. Usually price comes back into the entrance point and using stop loss is waste of money. There are instances the tendency is too powerful and you are stuck with your position. In these cases, you may use methods that are specific to avoid loss. 1 method among many is self explanatory. If you're in a negative situation, instead of bailing out with loss, you can hedge that commerce and ride the tendency in the opposite direction until market begins moving in the initial position's direction....

Great Reaction.

quote Safer more profitable and advisable? From these remarks I will tell you have very little hint about being a profitable trader hence lacking the understanding of what is a SL etc.. If the market reaches your SL is worth squat so it is safer than with a no stop loss also while brokers your advantage you're feeble in the pool of money which is why they spike the price. However, you already knew that correct? I mean you're not that stupid not to know that yes?

I guessed you don't have much grey matter, now I know you don't have any instruction too. Bye

quote I suspected you on't have a lot of grey matter, now I know you don't have some instruction too. Bye

But what you did not suspect is the fact I have a strategy operating good that doesn't use SL idiota! Lol
And that doesn't require grey matter it needs green bills that seems like you don't know how to make and you think everybody is a loser like yourself!

Hi tashkent,

That is such a touchy topic to commented on. I am not choking in your own ball sack.
I'm just gonna toss in my 2 cents as it pertains and reference only. I expect it somewhat useful at certain stretch to whoever is reading it.

no stop reduction trading is possible. There are many ways of doing this. Usually price comes back to the entry point and using stop loss is waste of money. There are instances the tendency is strong and you're stuck with your losing position. You may use methods that are certain to avoid loss.

Do you mean average your missing? Before we begin, let us just kill this choice.

one method among many is self explanatory. If you're in a negative situation you can hedge that trade and ride the tendency in the opposite direction before market begins moving in the position's direction. Keep cashing the profit and rinse and repeat till you break even or earn profit.

Many brokers does not provide hedging. For those ones do, they won't get much profit from these hedged position since traders is awaiting (out their lost) instead of continue trading. They would charge you commission for each and every transaction you put along with the spares. For immediate, FX Broker based in Russia does this and they allow hedging.

Hedging is handicapped for ALL US Brokers. So this isn't feasible for US traders.

martingale is just another trade management although almost everybody (including me) is wary of due to it's high risk.

I'd love to think Martingale is merely a strategy of playing this particular game. It is not a cash management or risk management. Double down your bet in a flowed system isn't anywhere close to risk management.
Lots gamblers have lost their bank using Martingale in vegas.

it's all up to the trader if favors to use sl or not. Because he understands what his risk tolerance is.

Sorry I wouldn't agree on this.
I'd love to day they don't set down a SL because they don't know when, where and how (the constraints in their programs ). As for me, being there, done that.

They don't know what they're risking because nearly all of them will be always focus on the profit instead of risk. A SL hit means they're WRONG; if there is not any sl, they're never wrong or they would profit, this can be the psychological barrier traders have a time to conquer. Of course, who likes to shed or being wrong?

If they have any sense of risk or Not to shed 10% on any of the position under any circumstances at all, a sl is going to be set down every transaction he put. Right?

By way of instance, if I don't want my account to get over 5% DD, I have a 5% risk place on each and every trade I put no matter how confident I am about the position I put.

disclaimer. Hedging and martingale is ONLY for experienced traders who can use them skilfully. Any abuse will destroy your account quicker.

any abuse will destroy your account quicker than anything.

Placing SL will buy you enough time to acquire a turn-around. It won't repair the problem in your system, but it would sure expand your account lifespan prior to your guessed out the next click on your own system.

In conclusion, and this goes to you all, If you all confident in your system and also the position you put, placing a sl won't harm you.
Do not take blame or out the SL that is killing your account consistently, work on your own system with the sl rules.

Think SL concerning risk management instead of capital management, maybe you'd know the importance having a SL on every position you set.

[quote=FXSayWhat;
Placing SL will buy you enough time to acquire a turn-around. It won't repair the issue on your own body, but it would prolong the lifespan on your account prior to your figured out the click in your system.

1) If you're anticipating a turnaround and hence why you've got a stop loss you don't have any idea what you're doing as a trader. The turn around may never occur!
2) When there is a issue with your system then you're foolish to be investing in it. Scrap it and look.
3) If you are anticipating the SL to prolong the lifespan of your account then you aren't anticipating your account to increase, no danger but that suggests you don't understand what you're doing!
4) If you are relying on the next click then all you're doing is preying and hoping to improve on your performance according to something that is not working. A person has to be mad to be repeating something which isn't working. Skip it, accept the loss and look. Do not look for something better!

Do you enjoy my conclusion based on your thinking? That is your own reality and your truth!

The way you're thinking is similar to this which is completely wrong. I should have winners if I have winners then when I undo the trades where I've a long I go brief and visa versa. You Have to Be the trader if you Believe that lol

Hello, This is such a touchy matter to commented on. I am not choking in your own ball bag. I am gonna throw in my two cents as reference and reference only. I hope to whoever is reading it it somewhat useful at certain extend. quote Do you mean ordinary your missing? Before we even begin, let us just kill this choice. quote Many brokers does not offer hedging. For those ones do, they won't get much profit from those hedged position because traders is awaiting (out their lost) rather than continue trading. They would cost you commission...

Great Response!
Hats off, Sir!
We can go over the pages and pages but at the end I'll still say that using a stop loss is a very special thing of each and every each trader. It is exactly like advising a grown up guy in romantic affairs with his partner. I'm for to not get involved with people matters. That is

If you mean you can trade how whatever you desire. . .yes, of course. But if the purpose is what is more powerful, more profitable, and advisable. . .then sorry, but trading using SL is exactly what it should be. . .the TP may be mental only if you're in the front of the screen all the time, however I prefer to place up I from beginning too (even when sometimes I transfer it).

I believes SL is like having a seat belt, in case believes go wrong along with your cash will crash, you prevent the strike fracture you...

forexintradi, good comment. Thank you. I would love to specify the risk before set the transaction. This way we know where our lines are when things go south, anything we have no ability to predict.

I think trading without SL is, like someone mentioned previously, such as driving a car without brakes. You may go through everyday trading with no losses, but you hit a reduction that is gonna eat up all the profits and much more. I tried that and zeroed my account in a few days.

Yeah, trading without a sl euphoria has become the most deadly combo. Be cautious.

just like what we said, u want to improve ur analysis ability to predict the price movement, more amazing hur analys then more big ur chance to make profit and u will place ur SL at the best position. Nobody know 100% where the price will proceed, but everyone can predict the price movement by do a bit of analysis they believe can predict the price movement.

Gabanda, sl is not just protecting you from the price change. Additionally, it defend you from any outbreaks. For instance, natural disaster, terrorist attack, unexpected bank calls. The example could be last year EURCHF move, without a SL, your broker is completed, so do a lot of those very long EURCHF who maintain long without SL.

One call from the CHF on 1/25/2015 resulted 3300 pips fall. Can all you forgot? Can you all still remember those that held Long position without a SL?

If you are interested, I would recommend you continue search what happen to the market following 9/11, Japan earthquake and Atomic escape, AUD flooding couple years ago along with many resent China rate cut string.

It can be achieved if it is allowed by the trading platform. You will find ppl keeping places for 6months, while hedging and covering the losses from a trade that they did not use stop loss. . .it's an alien strategy, especially here where 90 percent of traders claim to trade charts. But yes it can be done. Usually on longer timeframes.

Also very little time frames (as I like to call it extreme daytrading) do not need stoplosses since average trading time (entry,exit) is less than 5 mins.

For me personally, stop loss has several functions:

a) of course, prevents the margin call by tripping, or in short - stops the bad trade from developing.
B) it DEFINES my profit goal - system I'm trading requires my own profit goal to be bigger than my stop loss size. (I'm in daily charts, I totally require the SL)
c) stop loss size defines trailing - how am I gonna trail a position in profit using a miniscule stop loss size? - I want to open some space for possible counter-moves. Thus the optimal SL size for positions which are to be ridden for profit needs to be evaluated. For instance if my SL size is state. . 100 pips, and my trade would be 200 pips in the green, I'd place a trailing of about 100 pips, therefore another counter-move of 100 pips will discontinue out me - induce me to take profit.

For novice traders, the lack of stop-losses is usually a reflection of egoism, or a reflection of lack of knowledge of the trading platform basics.

I know a few traders who lost their accounts on flash crash in 2008 or 2009 (I forgot if it was exactly). In addition, I know a trader who had a stop loss but it jumped it

Long story short - make it the subject to place it on - same like condom when having sex using unfamiliar women.
And familiar too

One more thing, seeing stoplosses - once you start moving it about - ask yourself why are you doing this. That being said I'll point to b) again - not just it defines profit goal but defines the trade generally - constant profits, in vast majority of instances, need to emerge from consistent system/strategy - and there isn't any such a thing as constant system with no stop loss.

It is easy to understand when someone is aware of what is currently talking about. All of your comments make sense and that I agree 100%. Additionally your writing is respectul. It is a pleasure. Thank you.

FXsaywhat, wow thanks for the information bro, im new to know about that we can be protected by SL from any outbreaks. My friend was told by that great information about this soon.