Stop Loss

I`ve been working last few weeks without using a stop loss, i havent lost anything really, and it seems, according to my own strategy and trading time frame, i will continue these way.
I scalp, so i work in a very short therm, and never compromise far than 10% of my equity.
Has anyone any related experience to share with me?
I will apreciate.

Francisco

10% of your equity is too much to compromise on a trade if you are scalping. I recommend you trade with a STOP.

I often don't have a stop in place either. I my case it's because I look at other things beyond just price to decide when to get out of a position. Having a stop in just makes things more complicated and I generally exit a trade well before I would have been stopped out.

Of course every once in a while I forget and get pulled away from the screens to find the market has gone well against me. That's just being foolish on my part. If I'm going to be off the desk I always have a stop in.

MP --- its what i do every single trade !

fayalac said:

I`ve been working last few weeks without using a stop loss, i havent lost anything really, and it seems, according to my own strategy and trading time frame, i will continue these way.
I scalp, so i work in a very short therm, and never compromise far than 10% of my equity.
Has anyone any related experience to share with me?
I will apreciate.

Francisco

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for a relatively minor amount of time (a few years anyway) i tout NO stop losses, but i also add the proviso that one always be trading with the major trend of the currency, so if a mistake is made, the market will bail you out automatically.

it can be dangerous should you miss the trend direction, but almost invariably, if you hold long enough (and therefore do not lose to a margin call) you will come out of it with profit and possibly VERY good profit.

its a "game" and one a trader can exploit with profit by NOT GIVING MONEY BACK because a sl triggered a loss !

i have done 302 consecutive trades over a period of 2 months with NO losses because my account is large enough to handle "bad trade" drawdowns --- you have to play this game with one eye firmly on margin and the other on your equity.

the "street" states one should only use 2 - 5% of your equity per trade, and with no sl i would agree --- you simply have to build your equity to use and exploit this "method" to its utmost, or risk being margined out !

one of the things i do to handle margin is to take a counter trade to the "bad" trade --- this automatically nulls the margin to zero, but if you take a second counter trade, it actually increases the margin you have, builds equity and allows you to exit your counter trade without still having a tremendous margin call on the original "bad" trade !

SEVERE warnings when using the method, and watching your margin is of UTMOST importance, but my 302 trades for a profit of $32K must mean something !

mp

fayalac said:

...never compromise far than 10% of my equity.

Click to expand...

This sounds like a stop to me.

jj

mp6140 said:

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but almost invariably, if you hold long enough (and therefore do not lose to a margin call) you will come out of it with profit and possibly VERY good profit.

...

my 302 trades for a profit of $32K must mean something !

mp

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Have you ever heard of a guy called John Meriwether?

mp6140 said:

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for a relatively minor amount of time (a few years anyway) i tout NO stop losses, but i also add the proviso that one always be trading with the major trend of the currency, so if a mistake is made, the market will bail you out automatically.

it can be dangerous should you miss the trend direction, but almost invariably, if you hold long enough (and therefore do not lose to a margin call) you will come out of it with profit and possibly VERY good profit.

its a "game" and one a trader can exploit with profit by NOT GIVING MONEY BACK because a sl triggered a loss !

i have done 302 consecutive trades over a period of 2 months with NO losses because my account is large enough to handle "bad trade" drawdowns --- you have to play this game with one eye firmly on margin.

one of the things i do to handle margin is to take a counter trade to the "bad" trade --- this automatically nulls the margin to zero, but if you take a second counter trade, it actually increases the margin you have, builds equity and allows you to exit your counter trade without still having a tremendous margin call on the original "bad" trade !

SEVERE warnings when using the method, and watching your margin is of UTMOST importance, but my 302 trades for a profit of $32K must mean something !

mp

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Mp,

For a man of your experience, 302 trades and only $32K profit isn't very impressive at all. An average of $106/trade is pathetic for someone trading without stops.

new_trader said:

Mp,

For a man of your experience, 302 trades and only $32K profit isn't very impressive at all. An average of $106/trade is pathetic for someone trading without stops.

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my apologies NT -- but that is what i call the "beer account" and was the only account my clients will allow me to show !

there are some real trades in there, worth a few thousand at a time, but the majority are simple 5 pip hedges, done at specific times of the day and nite --- each trade earns $100 per side, so your math is correct.

Clients will NOT allow me to show other accounts i handle, so i never talk about them at all.

mp

fifty2aces said:

Have you ever heard of a guy called John Meriwether?

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afraid i dont remember the name fifty --- please educate !

mp

mp6140 said:

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my apologies NT -- but that is what i call the "beer account" and was the only account my clients will allow me to show !

there are some real trades in there, worth a few thousand at a time, but the majority are simple 5 pip hedges, done at specific times of the day and nite --- each trade earns $100 per side, so your math is correct.

Clients will NOT allow me to show other accounts i handle, so i never talk about them at all.

mp

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You handle accounts for clients, eh? Looks like someone's a vendor in disguise!

jj

Mathemagician said:

You handle accounts for clients, eh? Looks like someone's a vendor in disguise!

jj

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no math --- long ago i had a discussion (lets call it a grilling) by the mods and i made it VERY clear that i was not trolling for clients on this site

i really am interested in nothing more than expressing my ideas and certainly in picking up others good ideas --- ONLY reason im here by golly !

EDIT ---- i get clients through other clients and not wanting to be the biggest and bestest thing in the world, i tend to be considered "conservative" in a land of sharks and xmas bonus competitions !

mp

mp6140 said:

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my apologies NT -- but that is what i call the "beer account" and was the only account my clients will allow me to show !

there are some real trades in there, worth a few thousand at a time, but the majority are simple 5 pip hedges, done at specific times of the day and nite --- each trade earns $100 per side, so your math is correct.

Clients will NOT allow me to show other accounts i handle, so i never talk about them at all.

mp

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mp,

Why promote a dangerous philosophy if you can only give inappropriate facts to support it? To you it's only beer money, to many reading what you write it's hard earned money they can ill-afford to lose. Please stop giving advice to newbies and open your own private forum for advanced traders.

new_trader said:

mp,

Why promote a dangerous philosophy if you can only give inappropriate facts to support it? To you it's only beer money, to many reading what you write it's hard earned money they can ill-afford to lose. Please stop giving advice to newbies and open your own private forum for advanced traders.

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new trader PLEASE read what i wrote and not just get angry before you read it

i dont want to hurt anyone !
EDIT ---- if you ever notice, i put a strong disclaimer any time i mention it !
EDIT 2 -- actually, not looking for an arguement, these are VERY legitimate trades, as i would not snort at $16K per month --- its a "method" i used to teach, rather reliable, but i have also had to hold for days on some trades before they come home to roost which does prove the theory of no sl's
EDIT 3 --- all of my website life, i have protectected and taught the newb, which is completely proveable and while i talk about this method to intermediate and expert traders, ANY NEWB who pm's me or talks to me is TOLD HOW DANGEROUS IT IS --- i use it myself, and to good cause, but newbs are not yet ready to "follow the trend" which is the underlying basis of swing trading, and so i do NOT teach this to newbs !

but PLEASE remember, the newb is ALREADY using the method, and i warned that hes exposing too much money as all of us would do here ---- i understand those who disliike a bull in a china shop, which i am, but read the messages the bull leaves behind before you put him to death !

thnx

mp

mp6140 said:

===============================================================

my apologies NT -- but that is what i call the "beer account" and was the only account my clients will allow me to show !

there are some real trades in there, worth a few thousand at a time, but the majority are simple 5 pip hedges, done at specific times of the day and nite --- each trade earns $100 per side, so your math is correct.

Clients will NOT allow me to show other accounts i handle, so i never talk about them at all.

mp

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They're probably embarrassed to show their accounts, like this "client":

Forums - Lost half of my years salary in a week!

jj

Mathemagician said:

They're probably embarrassed to show their accounts, like this "client":

Forums - Lost half of my years salary in a week!

jj

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:-0


"and the username of the person who traded the account was MP6140 a moderator there who has started up the FOREX threads.."

could it be?

thats a dangerous game your playing mp, one day you will come un stuck for sure, maybe not tommorrow, maybe not next year but if you carry on trading this way you will lose and not only small, im talking big..................the game your playing is averaging down and the people you hear that lose their houses and go bankrupt all did the same thing, good luck to you but be very carefull as we may find that one day you just stop posting and then we will all realise what has happened to you..................in fact i cannot beleive someone so experienced like yourself employs averaging down, unless you have over $200k account you will lose for sure, if you have this amount then my apologises.

anyone reading that thread on elitetrader mathemagician put up?

Take Him Down

"EDIT 2 -- actually, not looking for an arguement, these are VERY legitimate trades, as i would not snort at $16K per month --- its a "method" i used to teach, rather reliable, but i have also had to hold for days on some trades before they come home to roost which does prove the theory of no sl's"

Do I need to add more :?:


oh go on then I will

It proves nothing

and there is nothing to argue about mp

take him down

candles said:

anyone reading that thread on elitetrader mathemagician put up?

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many years ago, in litigation and not settled to this day --- be kinda careful what you bring forth as its an ongoing situation.

mp

jayjay121 said:

thats a dangerous game your playing mp, one day you will come un stuck for sure, maybe not tommorrow, maybe not next year but if you carry on trading this way you will lose and not only small, im talking big..................the game your playing is averaging down and the people you hear that lose their houses and go bankrupt all did the same thing, good luck to you but be very carefull as we may find that one day you just stop posting and then we will all realise what has happened to you..................in fact i cannot beleive someone so experienced like yourself employs averaging down, unless you have over $200k account you will lose for sure, if you have this amount then my apologises.

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jay, averaging down is the PRIME investors method in the stock market -- to place me in the pit of hell for suggesting it is very unconvential thinking --- i am prepared to hold for very long periods if i make an error, which i try very hard not to !

PLEASE ALSO UNDERSTAND WHILE I AVERAGE DOWN, i also take an equal COUNTER TRADE or hedge which immediately locks the margin --- if i DOUBLE the trade to the counter side, im even creating equity and MORE margin !

IF YOU SHOULD SIMPLY LOOK --- no one is telling you to do it ---- with an open mind and good money management, you will see what is happening --- i dont demand anyone do it, but i do ask that you look !

THATS ALL !

MP