My stops are not for the feint of heart, and I don't recommend using them unless you are well educated on risk:reward scenarios and how the profit/loss chances of a particular system can greatly influence how different R:R ratios can be safely implemented.
Take a statistics class and you will understand why there are a large number of R:R ratios that can be used profitably (This is just my personal opinion/findings. Unfortunately, I am still working a full time job - take my advice with a grain of salt!). Personally I have found higher Risk:Reward ratios to be more profitable in the long run in regards to gap trading.
I consider myself an aggressive trader so occasionally I will take a hefty loss; but I use sound Money Management and it would take a few consecutive bad weeks for me to get into real trouble.
I might be starting a separate thread at some point but for now LG has been a great educator and this is my home
-CC
Also - Some Google searching will bring up some good resources where you can learn more about gap trading and why it is and always has been a successful trading tool is financial markets.
Take a statistics class and you will understand why there are a large number of R:R ratios that can be used profitably (This is just my personal opinion/findings. Unfortunately, I am still working a full time job - take my advice with a grain of salt!). Personally I have found higher Risk:Reward ratios to be more profitable in the long run in regards to gap trading.
I consider myself an aggressive trader so occasionally I will take a hefty loss; but I use sound Money Management and it would take a few consecutive bad weeks for me to get into real trouble.
I might be starting a separate thread at some point but for now LG has been a great educator and this is my home
-CC
Also - Some Google searching will bring up some good resources where you can learn more about gap trading and why it is and always has been a successful trading tool is financial markets.
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