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Trading without stop-losses

  • #121
  • Dec 1, 2011 6:50pm Dec 1, 2011 6:50pm
Quoting Kyle_Vee
It is absolutely important to have a SL.

Before you enter a trade, you need to know where your exit is, otherwise you are bound to fail.

Another point i want to make is, i see many people making the mistake of setting their SL based on a fix % of their capital, in order to follow the 2% rule, which i think is a good rule, except they are approaching it from the wrong side, instead of placing ur stop loss in at a random level so that you only lose 2%, place it at a logical level, and then adjusting your position size to then equal 2% once...
Great to see someone that thinks like me, and explains it so well, many pips to you my friend!

Most new traders think they have to bet big to win big, not always the case.
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It takes a lot for me to IGNORE you, but you can try.
  • #122
  • Dec 3, 2011 12:35am Dec 3, 2011 12:35am
purely gambling...
Quoting joldas
Hello, every one!

i have a question that anyone trade without stop-losses, and successed? Trading without stop-loss can be done? has any opinion, plz comment here? thanks.
  • #123
  • Edited 8:13am Dec 4, 2011 6:23am | Edited 8:13am
If you are trading intra day then it is possible. But only if you know the range, don't bet big, you are watching the market all the time, and have a mental stop, then you can trade without actual "nearby" stop loss.

But the biggest problem when you don't have a stop loss is the news, that can suddenly move the market by a large amount in one direction in a very short time. This can result in massive losses if you are unable to get out quickly.

It's definitely not for the faint hearted. I think everyone should have far away stop loss, to cater for surprise news.

I think best way to trade (intra day) without stop loss is to wait for the market to move significantly in one direction (thats why you need to know daily the range) and look for the retracement. For example if eurusd has moved about 200 pips in one direction then you can look for a reversal, because it is highly unlikely it will move another 200 pips in the same direction during the same day, so you are minimising loss. That's why I believe time of the day you trade is very very important. It really is not a good idea going into a trade during the beginning of US session (even early london session) without a stop loss, if you are the type of person who can't get out of bad trade quickly. Alternatively trade Asian session where the range is smaller.
  • #124
  • Dec 5, 2011 10:29pm Dec 5, 2011 10:29pm
I think it is possible to trade without stop loss if you did it on asian market
  • #125
  • Dec 9, 2011 1:04am Dec 9, 2011 1:04am
trading without a stoploss in place is something I never do. realize your analysis was wrong, take the loss, and move on. It will make you a better trader in the long run. I promise.
  • #126
  • Jan 30, 2012 9:18am Jan 30, 2012 9:18am
Hi all!

No SL means you are able to earn with other trades, what you loose with the first loosing trade. It's as simple as this.

It really works and gives you good profits, but it's not a simple thing to do without some tranning.

Best regards,
Hatzerim
Best Regards!
  • #127
  • Jan 30, 2012 10:40am Jan 30, 2012 10:40am
i trade with SL because i dont want a massive drawdown. moreover, because of my MM strategy, 400pips loss can wipe off my account (i double my lot size after each 400pips). so i stick with my 20-30pips SL and my 60-100 TP (i accept the little i get). my advice is stick with a HARD stop. what is the wisdom of waiting for a -200pips trade to come back and give me profits when i could have taken a small loss and wait for a clear signal to follow the trade to wherever it is going to? just my way!
  • #128
  • May 11, 2012 9:19am May 11, 2012 9:19am
Quoting joldas
Hello, every one!

i have a question that anyone trade without stop-losses, and successed? Trading without stop-loss can be done? has any opinion, plz comment here? thanks.
Yes I tried without SL. It is very risky. Suppose you have capital of $1500 you can try but keep the loss limit to $500. By using no SL you can remain in trade for longer period
  • #129
  • May 12, 2012 12:36pm May 12, 2012 12:36pm
Quoting joldas
Hello, every one!

i have a question that anyone trade without stop-losses, and successed? Trading without stop-loss can be done? has any opinion, plz comment here? thanks.
I tried trading without stop-loss earlier, won big and lost bigger , so now I enter with a sl and tp with every entry.
  • #130
  • May 13, 2012 3:46pm May 13, 2012 3:46pm
Another thing, trading without stop loss, you tend to get a lot of winners but occasionally big losses. If those big losses are more than 10% then you are betting too much or you don't have enough capital.

It's kind of opposite to usual risk reward scenario where your reward should be more than your risk, but this works out by the fact that the high frequency of win will still make it profitable.
  • #131
  • May 18, 2012 4:46am May 18, 2012 4:46am
i dont use TP because i trade within 12 hours and monitior closely however i always use a VERY LARGE SL.. I guess to me what happens to your account when 911 happens.. or when a tsunami hits japan... Yeh these things happen once every 5 years BUT you dont want to spend 2 years building a 10k account into a 200k account and have it blown out for a measly 500 bucks...
  • #132
  • May 18, 2012 4:50am May 18, 2012 4:50am
Quoting goal
Yes I tried without SL. It is very risky. Suppose you have capital of $1500 you can try but keep the loss limit to $500. By using no SL you can remain in trade for longer period
why would you want to stay in the trade longer? So it can come back? IT obvoiusly didnt move in the direction you wanted (because you are losing) So really, you have no idea if it will come back, you are just hoping...

The second the chart starts doing things i did not anticipate i pull out- up OR down.
  • #133
  • Jun 23, 2012 1:07am Jun 23, 2012 1:07am
I don't think without a stoploss is equivalent to gambling, as long as we have a stop in mind, not putting a stoploss can mean to help us avoid spikes from the market. Money management is the important part i guess.
  • #134
  • Jun 23, 2012 2:40am Jun 23, 2012 2:40am
Quoting jessie

I don't think without a stoploss is equivalent to gambling, as long as we have a stop in mind
In mind, on paper, attached to a trade.....what difference as long as it's a defined risk? How can you effectively work out a viable trade size without knowing your initial risk?




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  • #135
  • Jun 23, 2012 4:19pm Jun 23, 2012 4:19pm
Quoting jessie
I don't think without a stoploss is equivalent to gambling, as long as we have a stop in mind, not putting a stoploss can mean to help us avoid spikes from the market. Money management is the important part i guess.
Even having a stop "in mind" could not prevent you from losing against this 1,000+ pip monster move - how is that not gambling?

I usually find that the stop loss for new traders, as yourself with 9 posts, when the pain of losing just 1 more dollar is greater than the pain of admitting your position is wrong, you will exit!

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It takes a lot for me to IGNORE you, but you can try.
  • #136
  • Jun 23, 2012 6:21pm Jun 23, 2012 6:21pm
All this talk of SLs thought I would give you all something to read and consider....... Setting Stop Losses
You may also want to read some of the other excellent stuff David has written on that site....lots of good stuff there.
  • #137
  • Jun 23, 2012 11:11pm Jun 23, 2012 11:11pm
This has been all hashed out before.... click the link in my signature.

<If you dare> mmmwhahahaha.
  • #138
  • Jun 24, 2012 1:01am Jun 24, 2012 1:01am
Well here is another way of looking at it , for intra day traders and with the usual 1:2 win setting ratios and the volatile state of all mkts, your broker gambles that your S/L WILL get hit !!!
  • #139
  • Jun 27, 2012 11:51pm Jun 27, 2012 11:51pm
I trade often without using a stop loss, I haven't lost anything really, It seems to me that I will continue trading these way.
  • #140
  • Jun 28, 2012 12:28am Jun 28, 2012 12:28am
Quoting leopard31
I trade often without using a stop loss, I haven't lost anything really, It seems to me that I will continue trading these way.
goodluck
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