Real Fx traders do not use stoploss | Page 27 | Forex Factory

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Real Fx traders do not use stoploss

  • #521
  • Oct 15, 2016 3:07am Oct 15, 2016 3:07am
Quoting mlawson71
What is stop hunting, actually? The spikes that occur during high-impact events?

How many times have you placed an order where your stop loss got hit and price turned back soon after in your direction.

Stop hunts come in all shapes and sizes but this is the basic idea.
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Dragon Rider
  • #522
  • Oct 15, 2016 4:37am Oct 15, 2016 4:37am
That really depends on where I have put my stop loss, but it has happened occasionally. I don't really expect the market to be moving in one direction only. That said, I get what you mean.
  • #523
  • Oct 16, 2016 3:57pm Oct 16, 2016 3:57pm
Quoting barloc
{quote} How many times have you placed an order where your stop loss got hit and price turned back soon after in your direction. Stop hunts come in all shapes and sizes but this is the basic idea. {image}
I don't see that as a stop hunting but as a reaction of the market to an unexpected news on the JPY currency. You can check the volume spike at that time. If you trade 5 min charts, you are looking for trouble if you trade right before the news...especially if the breakout that you trade happened in very low volume since obviously all professional traders were waiting for the news outcome.
Don't give up on your dreams. Keep sleeping.
  • #524
  • Oct 16, 2016 8:42pm Oct 16, 2016 8:42pm
Also read carefully what 'Humility' has written. Forget about the leverage your broker offers or imposes, your real leverage is your position size divided by the amount in your account.
  • #525
  • Oct 16, 2016 11:39pm Oct 16, 2016 11:39pm
Quoting Artcool
{quote} I don't see that as a stop hunting but as a reaction of the market to an unexpected news on the JPY currency. You can check the volume spike at that time. If you trade 5 min charts, you are looking for trouble if you trade right before the news...especially if the breakout that you trade happened in very low volume since obviously all professional traders were waiting for the news outcome.

"basic idea' of what a stop hunt is.
Dragon Rider
  • #526
  • Oct 17, 2016 12:23am Oct 17, 2016 12:23am
Quoting barloc
{quote} How many times have you placed an order where your stop loss got hit and price turned back soon after in your direction. Stop hunts come in all shapes and sizes but this is the basic idea. {image}
Retail just love to Sell Low and Buy High. Therefore Retail loses.

Here is the secret to trading success, or at least to get a foot out of the grave of the long gone.


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  • #527
  • Dec 5, 2016 6:34pm Dec 5, 2016 6:34pm
Quoting Mingary
{quote} Retail just love to Sell Low and Buy High. Therefore Retail loses. Here is the secret to trading success, or at least to get a foot out of the grave of the long gone. {image}
 
Yesss.
The good old spike both ways. 

 
Let's see tonight Aud and tomorrow Cad. They are spike masters.  
 
Beware of robber banks (RB), bad advisors.
  • #528
  • Dec 15, 2016 9:16am Dec 15, 2016 9:16am
you cant know what will happen in future, i think only carry traders can go without stop loss
  • #529
  • Dec 16, 2016 3:26am Dec 16, 2016 3:26am
Quoting camaleonte
you cant know what will happen in future, i think only carry traders can go without stop loss
placement of stop loss we have to do, and no installation of stop loss will be in fear in a large risk to befall us. and it would be better if we did on the demo account beforehand to prepare for everything
  • #530
  • Dec 22, 2016 1:55am Dec 22, 2016 1:55am
what if the power goes out? what if my computer shuts down by itself for no reason. what if my phone catches on fire? what if I get shot and am physically unable to close a position which is possibly going to bring me margin call. this the reason for stop, just in case there is a guru software failure somewhere in the system of system which enables communication for trade..
  • #531
  • Dec 22, 2016 5:57am Dec 22, 2016 5:57am
I completely agree, one should always take the possibility for a technical or Internet failure into account when trading and have a contingency plan should that happen.
  • #532
  • Dec 22, 2016 10:46am Dec 22, 2016 10:46am
Quoting BubaYaga
what if the power goes out? what if my computer shuts down by itself for no reason. what if my phone catches on fire? what if I get shot and am physically unable to close a position which is possibly going to bring me margin call. this the reason for stop, just in case there is a guru software failure somewhere in the system of system which enables communication for trade..
1) How often are there power failures? Can't you just log on elsewhere and sort positions out? Use your phone?

2) If my phone catches on fire and I have it in my pocket or coat, I've probably got bigger issues to deal with than some open trades. I can log in on my pc the next time I'm at home (after leaving A&E).

3) Get shot? WOW! Again, I hardly think some open trades that I can't deal with for a few days (maybe a week or so) is going to wreck me financially. (If I die from the shot, yes, my wife has my account details and a friend knows a little bit about it and can close stuff down. In this case, other people have slightly bigger issues to deal with than some open trades.)

4) "just in case there is a guru software failure somewhere in the system of a system which enables communication for a trade...". Again - Wow, just wow. But in this case, go find someone to ghost write a movie/book for you, as your imagination is great, but your writing is rather...weak.


Btw, in case someone isn't sure, the feared "Margin Call" does NOT equate to spontaneous combustion/death/eternal torture.


Really tired of hearing all these overly dramatic FUD statements people LOVE to pull out of their backsides.

How do you even sleep at night, knowing someone could break into you house? Or be sure you turned the oven off? Or whether you've locked all the doors in the house when you go out? Or know whether someone is going to run the next red light and smash into you the next time you're out in the car? Slip in the tub and be unconscious while you trades spin out of control with a massive 400 pip move!?!? (btw, 400pips isn't massive and shouldn't be an issue for your trades)

Or any of another possibilities of risk we deal with every...single...minute/day/week/month/year?

Seriously. Go get a part in your local amateur dramatic club, as many of you are actually quite good, if a bit over the top. :-/


Oh, and 3 scenarios:
- You've only got a 33% chance of margin call in the VERY rare instance the market goes AGAINST your positions!
- Another 33% is staying roughly equal.
- Otherwise, there is a 33% chance for nice profit for you! Cash in the next time you can log in, winner! :-) <---No one seems to talk about Black Swan profits.
  • #533
  • Dec 23, 2016 12:25am Dec 23, 2016 12:25am
Quoting Nefser
{quote} 1) How often are there power failures? Can't you just log on elsewhere and sort positions out? Use your phone? 2) If my phone catches on fire and I have it in my pocket or coat, I've probably got bigger issues to deal with than some open trades. I can log in on my pc the next time I'm at home (after leaving A&E). 3) Get shot? WOW! Again, I hardly think some open trades that I can't deal with for a few days (maybe a week or so) is going to wreck me financially. (If I die from the shot, yes, my wife has my account details and a friend knows...
How do I even sleep at night, knowing someone could break into my house? Or be sure I turned the oven off? Or whether I've locked all the doors in the house when you go out? Or know whether someone is going to run the next red light and smash into me the next time I'm out in the car? Slip in the tub and be unconscious while my trades spin out of control with a massive 400 pip move!?!?

That's exactly my point! That's why you need stop loss. Wait, do you have house/car insurance? That's kind of like having a stop loss in case of break in, fire, car smash.

What if a Cajun Queen performs a voodoo curse on me and I suffer an aneurysm? or I require an emergency exorcism due to an unexpected demonic possession. What if I accidentally hypnotize myself and get amnesia - forever.

If I didn't have a stop loss I would live in a state of constant fear and/or terror of the infant possibilities which could render myself incapable of closing the position before the dreaded margin call - and all my hopes and dreams shall be dashed. I may even lose my will to continue to exist in the living realm..
  • #534
  • Dec 23, 2016 2:59am Dec 23, 2016 2:59am
Quoting BubaYaga
{quote} I may even lose my will to continue to exist in the living realm..
Exactly. You take reasonable precautions. SL isn't one of them. That's just a quick way to take yourself out of the market (out of a decent trade), before it's had a chance to do anything.

Your responses are amusing, but not as amusing as you think they are.
  • #535
  • Dec 23, 2016 3:15am Dec 23, 2016 3:15am
Quoting Nefser
{quote} Exactly. You take reasonable precautions. SL isn't one of them. That's just a quick way to take yourself out of the market (out of a decent trade), before it's had a chance to do anything. Your responses are amusing, but not as amusing as you think they are.
lol, SL is just a quick way to take yourself out of the market (out of a trade you no longer want to be in), before it's had a chance to take too much financial equity (and emotional equity).
I think your responses are much more amusing that mine. I like to believe you're just joking.
  • #536
  • Dec 23, 2016 3:34am Dec 23, 2016 3:34am
Some people trade without stops and able to consistently increase their account, and some peope just end up blowing it out.

BUt one thing is for sure, you will get into situations where you find youself in an equity drawdown, just hoping, praying, and wondering why the hell you ever got into this whole no stop loss wagon in the first place.

If you come out of that successful, it will reinforce your belief in no stop loss, but you'll probably start devising strategies to lessen the effect of feeling hopeless i.e hedging, gridtrading, etc.

IF you don't come out successful, you will be cursing the no stop loss idea left and right. And think anyone who does it is a newbie or doens't understand risk management.

For me, I believe it can work if you do it 'right' . There are proofs out there people making decent returns from it.However i trade with a stop because i'm a daytrader that only trade one instrument. That means i can't afford losing trade opportunities by getting stuck in a drawdown trade. It's all about trade turnovers in my case, and trading without stop loss reduces my overall profitability.
  • #537
  • Dec 27, 2016 4:28am Dec 27, 2016 4:28am
in stock market you can dont use SL and TP because the market open from 0800 to 1400 ( in Dubai )
but in Forex Market it is open from Sunday to Friday

you cant know what will happen in between
i think only position trader can trade without SL and TP

SL means that after this price you think there is no way the price will go on your direction again ... so way stay in trade ?

and TP same the the price cant go any more or it is enough prift and you like to go out

also if you think that like us we open 10 to 20 positions on a time so how do you think you will remember what was your strategy on this position

the best way in my view TP and SL

example yesterday i open positions @ 1800 in Dubai time and i put a TP and SL because i have to go to the work 8 hours + i have to sleep when i come back for 8 hours so what can happen in forex in 16 house ?? the price can go 200pip on any direction

i think you get the point
  • #538
  • Jan 9, 2017 7:08pm Jan 9, 2017 7:08pm
Not true at all...
  • #539
  • Jan 9, 2017 7:14pm Jan 9, 2017 7:14pm
What about spread traders? Running hedged positions?

There are plenty of ways to trade without a stop loss.
  • #540
  • Jan 9, 2017 8:30pm Jan 9, 2017 8:30pm
Quoting vinnytrades
What about spread traders? Running hedged positions? There are plenty of ways to trade without a stop loss.
Better safe than sorry.
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