I tottaly agree with you there tradergirl, it can take decades before price gets back that same level, if ever.
So here it goes, say it takes 1 year for the price get back to your breakeven.
In that 1 year you could have used those same money to generate income, now imagine you make 100 usd pr day on that amount pr day and u do that everyday.
So basicly its a dangerouse and careless way of doing it, and will mostl likely give you a very battered account. U might as well go to the casino with a trading mind like that.
I understand what you are saying, but it makes absolute no sense, u are locking ur capital for an unknown time that you could have used to actualy make something.
And using as stopp is a must in any trading, otherwise ther is no limit to what your loss could be, the human mind is not a machine, u will get emotionel with a huge loss, and will never be able to cover that position. I hear some say that if they dident use stops then they would have huge profits. But there is another side to that coin, if u where not using stops u would be even more scared and you would not be trading in that fashion to be begin with. So the results would not have been what you think.
Its very easy to go backtest things like these and try different scenairios, but its a dangerouse road to walk on, it will make give you false sense of securety beliving that this or that will happen, because on backtesting it works. Everyday is uniq in the marked, and so there is not way of backtesting it 100%.U can get close to it, but never 100%. I think its good toget a general idea of a trading method, by backtesting, but dont expect those results to be excat to the real thing when marked is live.
enough rant
With regards
Bashir Naimy