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Scott wrote...........
"Buy 5 Silver at 5.00 on the entry signal. Original stop is 496, 1% risk."
Scott....could you please clarify?????
Are you really trading a market with an average daily range of .15-.20(much
more as of the last 3 weeks) using a 4 cent stop and expecting NOT to get
stopped out? Many kudos if you are,however, your case would be unusual and
not "normal".
In your example, I believe one would have a much better chance of surviving
using a 20 cent stop on 1 contract rather than a 4 cent stop on
5....considering the volatility of the market in question.
What you have described is exactly why so many traders wind up getting
"nibbled to death by ducks". Unless, which may well be your
case, they have such a precise and accurate system that they don't get
stopped out by the normal noise of a market. I believe most
traders do not possess such an entry system and would be far better off
trading fewer contracts with a larger stop....rather than lots of contracts
with a small stop.
Tom Stein
comfut@xxxxxxx
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