Comments on: Close stops do not lower your risk http://theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/ Information and resources for those looking to learn about trading and the markets Sat, 19 May 2012 12:27:40 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: John http://theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/#comment-13063 John Mon, 10 Nov 2008 18:13:15 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/#comment-13063 Rod - I would say that's exactly what you should do. In situations like that you have to wait until an opportunity that fits your risk profile comes along. That's a major reason why proper account capitialization is key - to make sure you are always able to make the plays that come along. Rod – I would say that’s exactly what you should do. In situations like that you have to wait until an opportunity that fits your risk profile comes along. That’s a major reason why proper account capitialization is key – to make sure you are always able to make the plays that come along.

]]> By: Rod http://theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/#comment-13062 Rod Mon, 10 Nov 2008 17:23:27 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/#comment-13062 John, It's fair enough to say that you should take smaller positions to keep your per trade risk level, but what should be done if the market you are trading uses fixed contracts (futures), so you cannot go below 1 contract, and your risk per trade is too high? Should you stop trading this market until you have a better capitalized account? John,

It’s fair enough to say that you should take smaller positions to keep your per trade risk level, but what should be done if the market you are trading uses fixed contracts (futures), so you cannot go below 1 contract, and your risk per trade is too high? Should you stop trading this market until you have a better capitalized account?

]]> By: BW http://theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/#comment-5302 BW Tue, 27 Mar 2007 23:38:24 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2007/03/26/close-stops-do-not-lower-your-risk/#comment-5302 Hi, Nice blog you've got here...I think you hit the nail on the head with the last few lines....I don't use S/L to control my risk, I use position sizing. That's where the control is (and of course deciding when not to trade :) Like you, I like to put my stops to where they tell me I'm quite probably wrong...let everyone else act as the cannon fodder! BW Hi,

Nice blog you’ve got here…I think you hit the nail on the head with the last few lines….I don’t use S/L to control my risk, I use position sizing. That’s where the control is (and of course deciding when not to trade :)

Like you, I like to put my stops to where they tell me I’m quite probably wrong…let everyone else act as the cannon fodder!

BW

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