Mental stops vs hard stops
Which one do you use ?
Re: mental stops vs hard stops
I use wide hard stops to ensure that randomness doesn't stop me out from getting profits. However, I will put in mental stops that depend on information entering the market. So if some information comes that invalidates my entry reason, I will get up before my hard stop is hit.
I trade on larger time frames and am not so worried about stop hunting. That's usually a poor excuse for bad trading anyway. Stop hunting, barrier options battles, intervention levels: these are all things that are not highly predictable and the best thing to do is to just accept that they happen and you can get stopped out anyway.
I'm sorry if that last paragraph was a little off-topic but I know that it's a reason why some people elect not to use hard stops. Thank you for the post.
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