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Manual Trading - Without Stop Loss

ChilliBear (ChilliBear)
May 10 2010 at 18:28
8 posts
I would like to start a thread on Manual Trading - Without Stop Loss!

The reasons :

1) - To see what other people think
2) - To share ideas and strategies
3) - I have recently seen decent profits form NOT putting a Stop Loss and Just riding out the price wave.

OK I will Start....

Whilst trying out 2 scalping methods I hit a point in a trade of no return. I didn't put a stop loss and decided that as I was scalping near the top of a price high and the price continued upwards, that surely the price would return to make my trade even or profitable. Continuing to place a couple of Sell orders whilst the price continued to rise ( to my surprise) just made my situation worse. However......... As I suspected the price returned to a downward trend and I captured profit on my staggered trades until I zeroed my original trade. In short I made over $1000 on a $5000 account... BUT(s) I risked more than my account size suggests I should, the trades were open for nearly 2 weeks(a little hellish, as I normal open and close trades in the same day) BUT BUT BUT... I think there may be potential in a system that NEVER uses STOP LOSSES and Rides out the wave.

So to the discussion.... what do you LIVE, Manual, Traders Think? (also every trader) but you get my point.

ChilliBear

Don't Sweat the small stuff
stevetrade (stevetrade)
May 10 2010 at 21:22
1408 posts
Not using a stop loss is called gambling. Every trade should be worked out as a certain percentage of your equity. If you aren't setting a stop loss you have no idea what this percentage risk is. Therefore you don't have a trading plan and sooner or later you will end up broke. Guaranteed.

11:15, restate my assumptions: 1. Mathematics is the language of nature. 2. Everything around us can be represented and understood through numbers. 3. If you graph these numbers, patterns emerge. Therefore: There are patterns everywhere in nature.
cacus (cacus)
May 10 2010 at 22:22
119 posts

stevetrade posted:
    Not using a stop loss is called gambling. Every trade should be worked out as a certain percentage of your equity. If you aren't setting a stop loss you have no idea what this percentage risk is. Therefore you don't have a trading plan and sooner or later you will end up broke. Guaranteed.


I second Steve opinion... ALWAYS PLACE YOUR STOP LOSS! don't get into troubles just by playing this game! Market volatility, as showed these days, changes all the time and the wave ranges can become really HUGE, if you don't believe me pay attention to current days EURUSD/GBPUSD 1H charts and compare them with last month activity...
Good luck.

JC

Mental note: do not abuse.
ranesh (ranesh)
May 15 2010 at 02:54
257 posts
If you are a scalper, you definitely shoudn't be trading without a S/L. The idea of scalping is to get in and out of a trade in a matter of minutes, for just a few pips at a time. And your risk will reflect that.

Having said that, there are indeed 'safe' ways in which one can trade without using stops. Using stops is not the 'only ' way to manage risk. Whether anyone agrees or not is entirely upto them. The proof of the pudding is always in eating it. I'll leave it at that. 😉

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