Comments on: Tight Stops Make Me Nervous http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/ Information and resources for those looking to learn about trading and the markets Sat, 04 Feb 2012 14:17:59 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: John http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12968 John Thu, 23 Oct 2008 13:56:26 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12968 VJ - Glad I could help you a bit further along the path. :-) VJ – Glad I could help you a bit further along the path. :-)

]]> By: VJ http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12967 VJ Thu, 23 Oct 2008 13:06:26 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12967 amazing article. this line of thought has helped me a lot.... i always believed that tight stops were good, till you've managed to convince me that its not. in your other article you mention that they not only increase the number of losers but also decrease the number of potential winners, if you place the stop withing normal 'wiggle room', which would necessarily happen with a tight stop loss. when i read that, it was like a light bulb going on over my head. *grin* thanks. amazing article. this line of thought has helped me a lot…. i always believed that tight stops were good, till you’ve managed to convince me that its not.

in your other article you mention that they not only increase the number of losers but also decrease the number of potential winners, if you place the stop withing normal ‘wiggle room’, which would necessarily happen with a tight stop loss. when i read that, it was like a light bulb going on over my head. *grin*

thanks.

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12932 John Tue, 07 Oct 2008 18:21:03 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12932 syed - I wouldn't say that the article misses that point. It just doesn't speak to it as the focus is elsewhere. I have most definitely addressed the risk/stop discussion in other posts. I would definitely not say "basing your stops" on your risk is the way to go, though. I think in that you misspoke, as what you said in the next line hits the mark. syed – I wouldn’t say that the article misses that point. It just doesn’t speak to it as the focus is elsewhere. I have most definitely addressed the risk/stop discussion in other posts.

I would definitely not say “basing your stops” on your risk is the way to go, though. I think in that you misspoke, as what you said in the next line hits the mark.

]]> By: syed http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12891 syed Thu, 02 Oct 2008 19:29:42 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12891 this article misses out on a very important point. It's not about your stops, it's about what risk you take on a single trade and basing your stops on that. Ex: if you want to risk 5% on a trade, then take that 5% and divide by your stop loss. So now it doesn't matter if you set your stop loss at 10 points or 100. you always lose 5%. geez this article misses out on a very important point.

It’s not about your stops, it’s about what risk you take on a single trade and basing your stops on that.

Ex: if you want to risk 5% on a trade, then take that 5% and divide by your stop loss. So now it doesn’t matter if you set your stop loss at 10 points or 100. you always lose 5%.

geez

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12758 John Wed, 03 Sep 2008 12:04:59 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12758 john - To your points: 1) If you knew you were going to be stopped out, why would you even take the trade? 2) If tight stops are lowering your win rate (more losing trades) to the point where they are adversely impacting your expectancy, that's bad. 3) Good entries help solve a lot of trading problems. :-) john – To your points:

1) If you knew you were going to be stopped out, why would you even take the trade?

2) If tight stops are lowering your win rate (more losing trades) to the point where they are adversely impacting your expectancy, that’s bad.

3) Good entries help solve a lot of trading problems. :-)

]]> By: john http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12745 john Tue, 02 Sep 2008 15:56:36 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-12745 tight stops area greeat idea: 1- If you would have been stopped out even with a wider stop. So, if you would be stopped out with a 25 point stop, clearly it makes sense to have a 10 point stop. 2- if you are not too concerned with having a lot of losing trades 3- You are good with your entries tight stops area greeat idea:

1- If you would have been stopped out even with a wider stop. So, if you would be stopped out with a 25 point stop, clearly it makes sense to have a 10 point stop.

2- if you are not too concerned with having a lot of losing trades

3- You are good with your entries

]]> By: money management HELP! - Page 3 - Forex Forum http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-11596 money management HELP! - Page 3 - Forex Forum Mon, 25 Feb 2008 12:47:00 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-11596 [...] but that's a horrible idea. Tight stops do not decrease risk, especially if you trade bigger. Tight Stops Make Me Nervous __________________ John Forman Author - The Essentials of [...] [...] but that’s a horrible idea. Tight stops do not decrease risk, especially if you trade bigger. Tight Stops Make Me Nervous __________________ John Forman Author – The Essentials of [...]

]]> By: John http://theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-11196 John Wed, 13 Feb 2008 17:42:23 +0000 http://www.theessentialsoftrading.com/Blog/index.php/2008/02/13/tight-stops-make-me-nervous/#comment-11196 Dave from <a href="http://www.stocktickr.com" rel="nofollow">Stocktickr</a> just sent me this comment: Your most recent blog posts on tight stops and <a href="http://www.theessentialsoftrading.com/Blog/index.php/2008/02/12/should-i-use-price-targets-in-my-trading/" rel="nofollow">targets</a> really resonated with me. Amen to both! Dave from Stocktickr just sent me this comment:

Your most recent blog posts on tight stops and targets really resonated with me. Amen to both!

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