Effects of not keeping a Stop Loss

[ratan jain]

OK guys!

Thanks for your reponses

One question.......

Are we all here to make money, or just avoid losses.

In one thread, one very esteemed analyst has recommended a long on the Nifty

Now that esteemed analyst says he will hedge if the market goes against him, protecting against losses. ( I really dont know what this means, options are beyond my small head)

Now, are we here to protect losses by hedging our already wrong positions or to make profits from market movements!

Agreed, our esteemed analyst may not loose any money on the trade, but, did he profit from the fall and again profit from the subsequent rally?

See, market will once in a while reward people who dont keep stop losses, but most of the time, the markets will catch up with you and........you end up being the man in the photograph I have posted.

One more thing.....anyone who feels I have done wrong in pointing out the importance of Stop losses and the sheer bravery of trading without them at all, may please bash me up here

PS: Those who bash me, they may not be there for the next years movements

The markets allways catch up with brave people.

Only the humble idiots who keep stops are there year after year after year, taking medium profits and small losses

PS: Regards stops......I trade in a dangerous way too....if fact our esteemed analyst is a small cat in the amount of danger I take in trading, but I dont propogate my style.

I ama follower of martingales, which will strip u naked, if u dont keep discipline, but I have neve advised people to follw my martingales.

In fact, many times people have asked for an explanation to my complex martingales, and I have allways diverted the discussion, as I dont know if you have balls of steel to trade my system.

PPS: I just upgraded my balls to tungsten

 

[avinash]

Hi Friends,

As I have seen the current trend on this forum is to say, buy this, buy that, and DONT! keep a Stop Loss,

The markets are going to move up eventually.

BUT! Is this what they will make of you before reaching the target?

There is something called a business loss and something called and idiots loss

Hope you all realise the importance of taking a business loss, to come back and make an attempt the next day.

Regards.

hahaha good one!!

avinash

 

[CreditViolet]

There is nothing like generalizing whether one should keep stops or not.There are many strategies that do well without stops, buy and hold, hold and reverse etc.

Using stops is intrinsic to the strategy, a technical treatise on the subject would be more appropriate than vague theories.

 

[CreditViolet]

I ama follower of martingales, which will strip u naked, if u dont keep discipline, but I have neve advised people to follw my martingales.

In fact, many times people have asked for an explanation to my complex martingales, and I have allways diverted the discussion, as I dont know if you have balls of steel to trade my system.

PPS: I just upgraded my balls to tungsten

I have been always interested in your martingales theory, you never seem to explain it.Could you post a equity curve of the strategy plz and how you manage the drawdowns.I find it ironic that you dont understand dependencies and still use martingales on MA Cross systems.Plz elaborate

 

[ratan jain]

I find it ironic too, that I dont even know the meaning of trade dependencies

According to me, CV, trading is just managing quantities........

I make money on a 30 % system, and looking to improve it to about 40%

I dont think I will get it as high as 40%

Looks like I am going to have to live with this

 

[CreditViolet]

I find it ironic too, that I dont even know the meaning of trade dependencies

According to me, CV, trading is just managing quantities........

I make money on a 30 % system, and looking to improve it to about 40%

I dont think I will get it as high as 40%

Looks like I am going to have to live with this

To add irony to irony, I dont think you know what you are doing indulging in martingales.

And yes, you will have to live with it, since instead of building a better system, you spend most of the time here indulging in satire.

 

[vsparikh]

in day trading/short term trading, it goes without saying to maintain stop losses. All do trading to make profits. A stop loss is must keeping in view the RISK REWARD RATIO.
one must continuously amend the stop losses depending on the price movements and till the targets are achieved. By practising this only one can have limited losses and profits as targeted or unlimited.
A stoploss could be maintained dependent on the script's volatile nature, risk reward ratio and one's appetite of bearing losses.
without limiting your looses to minimum, one could vanish from the stock market faster rather evaporate without knowing.
vsparikh

 

[biyasc]

my new venture: day trade without stoploss.

my new trading method:

1: buy on breakout (cant disclose the breakout method).
2. sell around 3.15 pm.

is;nt a sound trading strategy.

 

[rakamath]

dear biyasc,
you may not disclose your breakout method, but you can definitely give a list of stocks at the end of the day which have broken out and which you are going to trade the next day for the benefit of all the members.

 

[biyasc]

dear biyasc,
you may not disclose your breakout method, but you can definitely give a list of stocks at the end of the day which have broken out and which you are going to trade the next day for the benefit of all the members.

ok rk,

here is my simple trading method:-

entry price: breaking previous day high at last hour.
entry time: after 2:30 pm & before 3:15 pm.
exit price: at market.
exit time: i have a auto square-up facility @3:25 pm.
position size: 0.10% of total capital.*
max. position: 2-3 at a time.
watch list: nifty-50, cnx bank & it.

*total capital: 1,00,00/-
position size (quantity): 0.10% of 1,00,000 = 100.

disclosure: this is the method i am currently using. this strategy is only suitable with long entry (at leats for me). also there is lots of errors & whispaws.