Stop Loss orders

[szafar]

Personally i do not like stop loss orders. I would rather hedge. Would you use stop loss alternates if available?

 

[_JWG_]

Personally i do not like stop loss orders. I would rather hedge. Would you use stop loss alternates if available?

Stop Loss.

Protect yourself before you wreck yourself.

JWG

 

[szafar]

Stop Loss.

Protect yourself before you wreck yourself.

JWG

The idea is to "Protect yourself" but without Stopp loss orders.

 

[_JWG_]

The idea is to "Protect yourself" but without Stopp loss orders.

Understood.

My opinion is... why complicated matters with a hedge?

Just place a stop loss where the trade is no longer valid.

Forgive me if I'm wrong... but wouldn't having another position open as a hedge just end up costing you more in commissions?

Cheers
JWG

 

[satman007]

i think, most shd prefer stop loss orders as the only option.

Those who chose this "I would use alternates if possible" may get along well sometimes...but not all..
Shd be better for very experienced men...though i still believe we shd keep it simple and Put a simple Sloss

A SL is one of the best things somebody who invented it, thought of when he/she was losing money

 

[TheBramble]

If you’re aiming to construct a perfectly correlated hedge to lock in some risk-free based on opportunities or mispricing, sure, but if you’re suggesting constructing a hedge purely to offset losses below a certain level, as others have said – why complicate it?

For one thing, hedges are rarely perfectly correlated to that which they nominally hedge and for another, the hedge itself can go awry all of its own accord and further increase your exposure and risk.

As an example, mispricing opportunities don’t always immediately revert to true market value – they can get a lot more out of whack before they do.

Stops are simple.

 

[foredog]

The problem with a hedge is that something could happen in one part that is only specific to that and not the other so would screw the hedge.

EG Short Sainsbury Long Tesco

Tesco investigated for tax evasion...down go Tesco 10% sainsbury largely unmoved as it's stock not sector specific.

 

[shulink]

I always use stop loss orders to protect minimize by trading losses and profits. Without stop loss, it is pretty dangerous on a day where the Dow drops 150 points or over.

 

[trader-john]

In my own top ten trader rules is: ' Never open the trade without stop loss". If you open a trade without stop loss - it is wild run. You are unprofessional amateur if you don't use SL.

 

[anley]

Stops should be everyone's best friend in trading.

Or put it another way if you trade leveraged products and don't use a stop then you WILL learn to regret that mistake.

 

[trader-john]

Stops should be everyone's best friend in trading.

Or put it another way if you trade leveraged products and don't use a stop then you WILL learn to regret that mistake.

Best friend you don't want to meet very often

 

[Joseff]

I do use stop losses for every trade. But would be very happy to have some other tools.

I heard the real pro Trader who trades for banks don't use stop losses at all. So what do they use to protect risks.

 

[counter_violent]

I do use stop losses for every trade. But would be very happy to have some other tools.

I heard the real pro Trader who trades for banks don't use stop losses at all. So what do they use to protect risks.

Hedging mainly for a balanced risk portfolio.

 

[anley]

I heard the real pro Trader who trades for banks don't use stop losses at all. So what do they use to protect risks.

They're not real pros if they don't use stops it's as simple as that. And never think the bank traders are that good, or even that most of them who call themselves traders are in fact traders.

Take 90% of them out of the bank, give them £1m to trade from a one man office and the majority of them will struggle. You see most of them make 90% of their money from the bid-offer spread.

Folks, this is a business of RISK and not reward, reward comes after you respect risk. Stops help to control risk which is why they're an excellent friend even if you get stopped out - why? Because they get you out of bad trades and that if you can turn you thinking around is good news which is why again I say STOPS ARE YOUR BEST FRIEND IN TRADING.........

But then I'd guess many of you know better

 

[anley]

Another great reason to like stops is they force you to think about a trade as a potential loss, ie if I buy FTSE at 5600 where will I be wrong if the market moves against me. They also can help keep risk constant, for example if you buy FTSE at 5600 with a 5500 stop and risk £100 that's £1 a point. But if you buy the same position with a stop at 5500 you can trade £2 a point. Same risk, different profit potential.

For people who don't use stops I'd bet that at least 75% of them never think what they're going to do if the market proves them wrong, all they think about is the profit potential of the trade and that's a MASSIVE mistake. Then they wonder why it all went wrong and no doubt post a threat entitled

'Help, I've just lost a fortune in my account, what should I do'

 

[Elisium]

For people who don't use stops I'd bet that at least 75% of them never think what they're going to do if the market proves them wrong, all they think about is the profit potential of the trade and that's a MASSIVE mistake. Then they wonder why it all went wrong and no doubt post a threat entitled

I agree with this. You should always be ready for the worst case. What will you do if . . .

In this case and way of thinking you will never open a trade without SL order.