When to stop.

TheGreatRecycler posted:
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month

In every trade? Really? If yes; then you should lose almost 60% when you face consistent 3 SL; isn’t?

Adribaasmet posted:

TheGreatRecycler posted:
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month

In every trade? Really? If yes; then you should lose almost 60% when you face consistent 3 SL; isn’t?

Very valid question; no doubt 20% is huge; even I consider myself not to use any opportunity with more than 2% risk ratio!

TheGreatRecycler posted:
I set my stop loss at 20% of my equity. This is working really well for me, haven't had a losing trade all month

25 days of trading without a losing trade means that your strategy is profitable so far.
If the strategy continues to be profitable, and the stop loss at 20% of your equity is never reached, then in that case a stop loss would not be needed

I have seen some comments stating that some random stop loss is a way. Never ever do a random stop loss because it is like randomly study a part of topic thinking it will surely coming in the exam while ignoring other, as a result, you get a poor grade. That is like with random SL. Randomly setting SL leads to potential loss.
So for me, I always put the SL based on the market conditions and risk management.

fancydandy posted:
I have seen some comments stating that some random stop loss is a way. Never ever do a random stop loss because it is like randomly study a part of topic thinking it will surely coming in the exam while ignoring other, as a result, you get a poor grade. That is like with random SL. Randomly setting SL leads to potential loss.
So for me, I always put the SL based on the market conditions and risk management.

Good choice; same from me! I always set my SL & TP according to the position of nearest support & resistant levels;

It depends on your trading strategy and market condition If you are sustaining without any loss it counts as well.

Baazex posted:
It depends on your trading strategy and market condition If you are sustaining without any loss it counts as well.

Traders can use stop loss trading tool in this case; don’t need to wait for the result lively!

I think it's all relative. There are a lot of strategies now that simply won't work with such an approach. Of course, if you remember about the reserve and the amount of capital in general, if it allows, and you do not let the situation go on its own, and constantly analyze what is happening on the market, then even a narrow stop will not limit you from the profit. Again, everything depends on how each trader is used to trading. I always have some disputes with my friends in the sphere, because absolutely everyone has their own opinion. Everyone already has some experience and copes with these or those situations in different ways. Therefore, it is impossible to say that this approach can become universal and help in any situation without exception. Just try what will suit to you.

Shalidor posted:
I think it's all relative. There are a lot of strategies now that simply won't work with such an approach. Of course, if you remember about the reserve and the amount of capital in general, if it allows, and you do not let the situation go on its own, and constantly analyze what is happening on the market, then even a narrow stop will not limit you from the profit. Again, everything depends on how each trader is used to trading. I always have some disputes with my friends in the sphere, because absolutely everyone has their own opinion. Everyone already has some experience and copes with these or those situations in different ways. Therefore, it is impossible to say that this approach can become universal and help in any situation without exception. Just try what will suit to you.

And how will you deal with a Black Swan or other such equally colorful named catastrophic market move?
You're just going to allow that kind of event to have a catastrophic impact against the trading account?

Absurd. Risk management is the #1 priority for successful investing. Just because you feel your account is large enough to eat a -3000 pip negative spike against does NOT mean that everyone copying your signal and such will have those same levels of protection. Now I'm not saying you're selling a signal or allowing direct trade copies, but typically when people have a largely profitable account, there is also usually someone selling those trades via signals. Etc etc etc. You're ignoring the basic #1 rule of successful investing.

RISK MANAGEMENT is the #1 priority. Anyone who says Risk Management isn't important, is someone who is putting their entire investment capital at risk, and putting the investment capital of others at risk as well.

If you don't properly manage the risks, then it's absolutely irresponsible.

Risk Management is more important than generating a fast profit.