thread: Trading without stop-losses

Amazing how we can get more than 20 pages of newbies propagating the rule of using stop losses. Hard prevent losses aren't necessary if leverage is used. You won't ever succeed in this organization if you dont grow beyond what is taught. There is no one method to trade however when 95 percent of newbies religiously regurgitate the same thing then that should tell you something.

Exactly.

Hello, every one! I have a question that anyone successed, and trade without stop-losses? Trading with no stop-loss could be carried out? Has any opinion, plz? thanks.

It wasting your cash. Better you donate it for me

In trading, you will need to examine every assumption you create the'mantra' may be incorrect or simply pertinent to a certain trading strategy. The 2% logic, the must use hard ceases. . .etc etc . , you name it.... All have to be analyzed in the context of your own trading strategy. You may be victims of assumptions that are false.

The choice whether or not to utilize ceases is a risk management decision which relates to a trading strategy. Unfortunately the moment you introduce hard ceases, by definition you present your operation and drawdowns. However a hard stop of a kind is a requirement when trade risk is important in the context of total trade capital....but if you are prepared to diversify where every transaction and it's associated risk is minimal in the context of your general trade capital, then it is possible to start receiving benefits your opponents are unable to capitalise on.

Utilising performance based trade exits that exit positions at minimum rather than maximum excursions from trade entry are a significant contributor to overall performance but can only be efficiently applied when trading with low trade risk vulnerability.

For instance a trader who deals a long only diversified portfolio of shares may invest in say 20 stocks at which every allocation represents 5% of their total portfolio. The maximum overall risk of every position is therefore a 5% impact on the total portfolio in which the stock price goes to $0. In these instances you can see a hard stop is clearly not required as a 10% adverse movement may only amount to a total risk of 0.5percent of their portfolio. Likewise those traders who trade a diversified portfolio (eg. Where average commerce risk amounts to say 0.1% to 0.25% of the portfolio) can afford to utilise alternative exit mechanisms which can substantially improve overall performance. Exit measures such as foliage or bollinger exits are performance related exits as opposed to funding risk exits and can significantly enhance strategy yields with reduced drawdown exposure. You could be interested in hearing what some of those pro's say about this matter.

http://bettersystemtrader.com/029-alan-clement/

http://bettersystemtrader.com/037-ce...s-stop-losses/

I typically eliminate SL and care about stop out level of course.

Copernicus, I agree there are strategies to reduce your risk exposure. You hear you should us SL to minimize Risk. It is the most easy way but not necessarily the way.

It depends on your style. I understand some people without SL that achieved success in forex, but myself I wouldn't do this. On the flip side, recognizing SL level that is fantastic is an art.

Unless you are doing grid design martingale trading, else trading with no stop loss will certainly bankrupt your account earlier or later.

I usually remove SL throughout high volatility and care about cease out amount of course.

What if you're on the wrong side along with the volatility pushes price 2x or 3x your initial stop?

Hello, every one! I have a question that anyone trade without stop-losses, and successed? Trading with no stop-loss could be carried out? Has some opinion, plz comment here? thanks.

I understand some people who trade stocks and leave their stop loss out of the market. The attractiveness of this is that you don't get stopped from market fluctuations, and their trades persist higher. If however the candle shuts beyond the mental stop amount (there is a stop loss, it is not put in the market), the following candle (at launch ) they close the trade. Later I'm going to research this. I suspect it'd be a better strategy.

(side question: how many posts does one have to perform before they get licensed to post qs?)

I'm new and confused . I shorted AUD/USD and the market went against me.
I corrected my stop loss farther to allow volatility and ended up losing 20% of my account.

Afterwards I shorted double on the EUR/USD with a tight stop loss (7 pips) and both were removed and minutes after, the price moved down 70pips.

I lost 35 percent of my live account in a month and now I feel like a loser though I do not wish to give up learning to trade Currency Market.