DislikedMany people trade without SL because they think they'll make more money - because they're not taking losses. But the opposite may be true - they may make more money if they have a SL. Clearly, the purpose of trading without SL is to not get stopped out. But, of course, with or without SL, many winning trades go in to drawdown before they become winners. We just don't know how far they'll go in to drawdown. If you trade without SL and use high leverage you may be lucky for a while, but your account will blow up sooner rather than later. So, if you...Ignored
During those periods of large drawdown, taking on much more of a trade is difficult unless you have a huge account at small leverage, as you say. Confidence sufferes and that can take a while to get over....I'm telling you....because I know!!
Once the person learns to trade properly and has a good win/loss ratio, he/she learns to appreciate the value of a SL (for emergencies), as well as recognise and admit the mistake and close the trade.
Thanks for your post...I enjoyed reading it.
Doing what you like is Freedom. Liking what you do is Happiness.
) so I would end up losing twenty percent after I finally threw in the towel. You can set a disaster stop far enough away from price and exit manually but you need a stop of some kind to keep you from being yourself. Humans are hard wired from an early age to fear loss and failure and it takes a lot of time to unlearn that. You cannot be a perfectionist and win at trading. The best traders win ten million and only lose eight. You still had to lose eight million to get the profits.
I agree. Do what you need to do to expand your account. There will always be Yes and No for different reasons and rationales from others. Thanks for sharing your hedging strategy. You devise your own system and strategy, thus, you are the BEST person to know if it works.
