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Trading without stop loss?

  • #1
  • First Post: Sep 13, 2005 3:48am Sep 13, 2005 3:48am
Hi I was thinking if it can be a good idea, take an extremely low leverage, say 1:2 or 1:3 buy or sell something and waite for a good wind. If you are in plus, u get your profit. If not, you are waiting until you are. With a low or no leverage you will lose only if Euro will fall back to 90 cents, which is hardly probable. Any suggestions?
  • #2
  • Sep 13, 2005 4:18am Sep 13, 2005 4:18am
sounds like the ole' buy and hold strategy. remember this, if the potential loss doesnt "hurt" you, then profit potential probably wont make you very happy.
Relax and be happy.
  • #3
  • Sep 13, 2005 6:41am Sep 13, 2005 6:41am
Quoting merlin
sounds like the ole' buy and hold strategy. remember this, if the potential loss doesnt "hurt" you, then profit potential probably wont make you very happy.
This sounds like: low risk low profit potential, hign risk high profit potential
kiss the trend
  • #4
  • Sep 13, 2005 6:45am Sep 13, 2005 6:45am
It's not that easy ...
You've to invest a lot of money if you want to have some profit.
You must select position very carefully, having in mind a lot of fundament. This is hard enough for small trader to have good long term information.
You have to select broker with very low swap.
After all if you're good enough to do it, you may be lose a lot of potential short term profit while you waiting...

PS: The only good thing will be that you'll have to watch the market several times per month and you'll have a lot of free time. So, I recomend you BUY USD/JPY now at 110.9 and wait at least 125.

Good luck
Coming like a sheep and outgoing like a sheep ... What is this?
  • #5
  • Oct 17, 2005 5:54am Oct 17, 2005 5:54am
Hi

I've been using this method, "buy and hold" for 32-33 days by now.
Results: $5250 out of original $2000, or 157,5%.
The only negative sales were by acident (wrong buttins and stuff)
Once I was losing seriously on 4 positions, and was close to loose , but luckyly ended up in profit.
In my opinion you should never trade more than 25-30% of your total account strength.
  • #6
  • Oct 17, 2005 6:31am Oct 17, 2005 6:31am
Quoting Vlad
Hi I was thinking if it can be a good idea, take an extremely low leverage, say 1:2 or 1:3 buy or sell something and waite for a good wind. If you are in plus, u get your profit. If not, you are waiting until you are. With a low or no leverage you will lose only if Euro will fall back to 90 cents, which is hardly probable. Any suggestions?
You are decreasing the leverage and thus decreasing the profit potential. If you want my opinion, buy assets, invest in stocks and bonds if you have a large amount of capital, they will almost bring you the same rate of return and maybe higher than if you did it with currencies.

Thanks,

Nader
  • #7
  • Oct 17, 2005 6:27pm Oct 17, 2005 6:27pm
I've gained and lost using stops and not using stops. I just keep trying. As long as I keep trying, that's all that matters. Well, as long as I have trading capitol that is.
Because helping each other is a good thing.
  • #8
  • Oct 17, 2005 6:54pm Oct 17, 2005 6:54pm
Quoting Vlad
Hi

I've been using this method, "buy and hold" for 32-33 days by now.
Results: $5250 out of original $2000, or 157,5%.
The only negative sales were by acident (wrong buttins and stuff)
Once I was losing seriously on 4 positions, and was close to loose , but luckyly ended up in profit.
In my opinion you should never trade more than 25-30% of your total account strength.
I agree with your post. I trade with low leverage also. Am having excellent results also.
  • #9
  • Edited 8:18am Oct 18, 2005 5:24am | Edited 8:18am
  •  Trader#0000
  • | Status: Unregistered Trader
Quoting Vlad
Hi I was thinking if it can be a good idea, take an extremely low leverage, say 1:2 or 1:3 buy or sell something and waite for a good wind. If you are in plus, u get your profit. If not, you are waiting until you are. With a low or no leverage you will lose only if Euro will fall back to 90 cents, which is hardly probable. Any suggestions?
I always wanted to try this strategy, but I am too chicken. It's painful to see your position at -100 pips and just have faith that it will turn around. Although I will say that odds are that the Fed will contine to raise interest rates and things look very bullish for USD at least for the rest of the year. it'll probably be a safe bet to "buy and hold" USD.
  • #10
  • Oct 18, 2005 7:27am Oct 18, 2005 7:27am
This strategy may give you good results if you increase your position when the trade moves in your favor. (pyramiding) But you need to maintain the risk constant by only risking your profits. (you’ll need stops on your new positions)



Kester
  • #11
  • Oct 19, 2005 6:01pm Oct 19, 2005 6:01pm
Trading with low leverage such 2:1 or 3:1 is an excellent strategy. I believe beginners start trading with too high of a leverage. Being down 100 pips shouldn't be too hard to stomach if you have $10k in your account, that's only 1%. And the trade will probably come back in your favor. Having a 120 pip stop loss is sometimes safer than having a 30 pip stop loss especially if you're using low leverage and you know what the hell you're doing when you opened the position.
"Do or do not. There is no try" ~Yoda
  • #12
  • Edited 7:12pm Oct 19, 2005 6:58pm | Edited 7:12pm
Quoting Vlad
Hi

I've been using this method, "buy and hold" for 32-33 days by now.
Results: $5250 out of original $2000, or 157,5%.
The only negative sales were by acident (wrong buttins and stuff)
Once I was losing seriously on 4 positions, and was close to loose , but luckyly ended up in profit.
In my opinion you should never trade more than 25-30% of your total account strength.

Hmm. For the profit of 50% with the leverage of 2:1 shouldn't be your position increasing by 25% within 30 days? Hard to believe.
  • #13
  • Oct 19, 2005 7:56pm Oct 19, 2005 7:56pm
Quoting Pip Daddy
Trading with low leverage such 2:1 or 3:1 is an excellent strategy. I believe beginners start trading with too high of a leverage. Being down 100 pips shouldn't be too hard to stomach if you have $10k in your account, that's only 1%. And the trade will probably come back in your favor. Having a 120 pip stop loss is sometimes safer than having a 30 pip stop loss especially if you're using low leverage and you know what the hell you're doing when you opened the position.
It depends. Are you willing to see your position in the red for 4-6 months for example before getting back to green, if ever???

Suppose that you were bullish over the Euro in late 2004 and bought with low leverage using the "Buy & Hold" strategy at 1.3500, how much time do you expect to pass before the Euro gets back there once more just for you to breakeven, not to mention the rollovers of course, which is a pain generator everyday you hold the position.

Thanks,

Nader
  • #14
  • Oct 21, 2005 9:45pm Oct 21, 2005 9:45pm
Best solution!,

Get a plan or a system & backtest the snot out of it!!... Very quickly you'll see the profitability or losing capability of using no stops or lower margins. Bear in mind, the longer you plan on holding your positions, the more "fundamentals" you want to pay attention to!.

Pipbull
  • #15
  • Oct 22, 2005 2:20am Oct 22, 2005 2:20am
Quoting baboon
Hmm. For the profit of 50% with the leverage of 2:1 shouldn't be your position increasing by 25% within 30 days? Hard to believe.
unfortunatly, it is a demo account with usual leverage... When I will start with real, i will take 1:10 or 1:20 due to lack of funds..
  • #16
  • Oct 22, 2005 7:11am Oct 22, 2005 7:11am
TRading withought stop loss
Attached Image
kiss the trend
  • #17
  • Oct 23, 2005 9:42am Oct 23, 2005 9:42am
Forgot to use stops ( and was overleveraged ).
  • #18
  • Oct 24, 2005 7:55am Oct 24, 2005 7:55am
Isn't a hedge fund a bit of a contridiction. The only reason you hedge is to protect your position..So they expect to lose on the position first and tell you its a hedge fund...LOL
Sorry ES just my sik sense of humor...
Back to the original post, it sounds like bird watching in lions country style of trading. I can't remember the author, but he only trades one pair, one direction, one lot for one percent. A fundamental trader. I thought I had my head right when trading technical until I read his book.
It took a while to come to grips with getting back to relying on the tech analysys. So now I am demoing tech JIM style and ES's basket. I must say ES's basket so far is very time efficient for a great result.

Ron F.
  • #19
  • Oct 25, 2005 12:40am Oct 25, 2005 12:40am
Quote
So now I am demoing tech JIM style and ES's basket. I must say ES's basket so far is very time efficient for a great result.
What do you mean by tech JIM style and ES's basket?
"Do or do not. There is no try" ~Yoda
  • #20
  • Oct 26, 2005 7:24am Oct 26, 2005 7:24am
Pip, If you have not read Eletrcs Cash & Carry thread yet, than do yourself a favour and have a read.
Senario: Proffit made from trading a system developed from Jims PF, put into ES's Cash & Carry system (managed), generates income without depleating capital. As you keep entering profits from trading you income grows.
Great system ES. Can't wait for the PF Jim. Keep up the good work guys. Sorry to stray from the topic.

Ron F.
PS have lost your Ph# ES, please e-mail again if poss. Thanx again.
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