|
PureBytes Links
Trading Reference Links
|
I view stops being hit as a price of doing business. I never ever ever
trade without a physical stop placed in the market. In fact, the first
thing I consider when deciding on a trade is where to place the stop. If a
reasonably secure stop is too far away, then I don't do the trade. You can
do what you will, and this is just my opinion (based on being a long term
survivor) but trading without a physical stop in the market (an option stop
satisfies this criteria but opens up several new problems for the short
term trader) is not a survival behavior.
Again, I know there are lots of ways to skin the trading cat.... but I
would rather walk the streets naked than have a position of any kind
without a resting stop in place behind a physical price barrier.
One last point, over the years I have met a lot of great traders. Almost
without exception the ones I know that have had long term success have
worked trades from the risk side back and use stops religiously.
At 03:26 PM 5/6/99 -0600, gary bodnar wrote:
>Hi all
>
>My gambler friend once wrote something about the stops..."It is like leaving
>your wallet on a street in New York City. You can be sure it will be gone."
>Prefer to use mental stops...
>
>Gary
>
>
>
>Earl Adamy wrote:
>
>> There are cases where stops are run in spite of good placement (had it
>> happen yesterday on short in crude). Generally, however there is a message
>> when a well placed stop is run and that message is that the trader was
wrong
>> about the market. The act of placing the stop in the market is a commitment
>> by the trader that he/she will acknowledge the mistake.
>>
>> Earl
>>
>> ----- Original Message -----
>> From: BrentinUtahsDixie <brente@xxxxxxxxxxxx>
>> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>> Sent: Thursday, May 06, 1999 11:20 AM
>> Subject: Re: Stops/Michael
>>
>> > My rule is to never trade naked. Funny how many nudist traders there are.
>> Ok
>> > for you that don't understand, when you have only a short or long
position
>> > you are considered naked (if you always trade naked you are a "nudist
>> > trader"). So my rule is to always use options for trade protection and
>> never
>> > use only stops. Usage of stops is very peasant for the stop runners, they
>> > will get you about 89% of the time in my experience. So learn how to make
>> > lemonade out of your lemons if you want to be a really good trader.
>> >
>> > Brent
>> > -----Original Message-----
>> > From: Michael <comdytrd@xxxxxxxxxxxxx>
>> > To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
>> > Date: Thursday, May 06, 1999 10:49 AM
>> > Subject: Re: I refere to earl adamy "june bonds " message
>> >
>> >
>> > >Bottom line...NEVER trade without a stop ... If you don't know where
you
>> > >are going to exit a trade, then you have no risk/reward parameters in
>> mind
>> > >and you have a poor trade and a potential disaster...
>> > >
>> > >Learned this the hard way
>> > >
>> > >Michael
>> > >
>> > >
>> >
>
>
Stewart Taylor
Taylor Fixed Income Outlook
Voice: 501-219-9774
Fax: 501-228-0963
E-Mail: staylor@xxxxxxx
Web Site: http://www.cei.net/~staylor/
|