|
PureBytes Links
Trading Reference Links
|
This is a common misconception a lot of people have trading. You place your
stop and THEY know where it is and go get it then the market heads back in
your direction after your stopped out. Reality is floor traders know where
over bought and over sold levels are and where most traders would place a
protective stop from those points. During certain times of the day when
volume is light they will run those points of stop protection. Again being
on the floor you have split second executions and pennies for transaction
cost. You have to give the devil his dues if your playing in his back yard.
Trading very liquid markets with high volume affords playing closer stops
like bonds. Markets that have limited liquidity and low volume don't like
bellies. If your going to day trade and want to use no stops then its wise
to use a no home run stop. This is a stop that has a larger risk and used
just in case the worst happens and your emotions need to be out of the way
at this point. Your first loss is always your best loss even though its
much worse than you expected.
Robert
>>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
>>
>>
>
|