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Could not agree with you more about George Angell being a brilliant trader.
I have found based on his market symmetry course that when the S&P's are
vibrating at an obvious rate, I can safely trade using a one point stop,
Very low risk, even on days like Wednesday when the S&P's went down limit.
Happy trading.
-----Original Message-----
From: Brian Keith Voiles <admagic@xxxxxxxx>
To: realtraders@xxxxxxxxxxxx <realtraders@xxxxxxxxxxxx>
Date: Thursday, August 12, 1999 2:23 PM
Subject: Stop Placement
>Since every broker in America tells their client to place a stop above
>previous resistance or below previous support, I've been struggling with
>that "following the crowd" mentality. I've been using "mental-written"
>stops fairly effectively. But, day before yesterday I found myself up 20
>points and wanting more in the S&P 500. Rather than taking my profits (or
>some of my profits) and running, I decided to "go for" more. Long story
>short, the whole trend changed and before I knew it I was out 39.9
>points. I didn't pull the plug on the trade while it was still profitable
>(although that's really hard to do because I was thinking "Well I could've
>had 20 points, now it's down to 16, 14, 12, 8, etc) because I felt they
>were taking the market up so they could take it down some more. Anyway, if
>I had a stop placed I would have been stopped out in the first place --
>which ultimately would have been better than what I did lose, but then
>again, I wouldn't have had the "opportunity" to make 20+ points (hand I
>chosen to take my profits when I should have).
>
>I'm looking for advice:
>
>Where do you S&P Traders place your stops? Do you base it soley on a
>percentage of your trading capitol?... equity? If so, what percentage?....
>I've heard 3 and 5% -- but if you're trading 2 or 3 contracts (like I do --
>I built my account from $10,000 up to $50,000 in July -- yipee!) at 5% I'd
>have to place a 3.3 point stop (Risking $833.33 on the trade). In the S&P
>this is a pretty tight stop based on my limited experience of one-year.
>
>Placing my stop above previous resistance or below previous support sounds
>absolutely crazy to me -- all the floor traders know where the orders are,
>and they DO run the stops.
>
>Realizing that ANYTHING CAN HAPPEN in the market, it makes sense to
>actually have stop orders in the market and working.... but I'm struggling
>with where. George Angell is a brilliant S&P trader and on his "Sniper
>Trading" course and his "Precision" book he says he never puts a stop order
>in at the desk, but adhere's to his own stops just the same.
>
>Anyway.... all opinions and advice are welcome. Any books I should read,
>people to talk to, advice to pay for? Help!
>
>Warmly,
>Brian Keith Voiles
>
>PS> I love this list!
>
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