[Jene]

Well most of the traders have fixed percent to cut their loss at 5 %. If they have $10000 in the account, they would probably take a risk of 5% the maximum loss would be $500. If we are trading one standard lot this would approximately 50 pips. You can also use support and resistance to know better where the specific point of profit is and cut losses.

[Tams]

Originally Posted by BennyHey »

I wanted to start a thread on stop placement. I know the most popular answer would be placing it behind the last swing high or low, but I wanted to hear what other ideas are out there. A few I know of are using ATR as a guide and using 2% of total acct size.

I know it is totally dependent on what type of trader you are, investor, swing trader, day trader etc. but I would appreciate any new ideas either that your using yourself or have seen or read about.

Best of luck guys can't wait to see some responses

2 stddev.... that should do it. LOL


you got the idea on the right track, it depends on what you are doing.

[ant]

Short-term traders should strive for good trade location. Good trade location means that your entry is close to a reference level that you can lean on. If the market trades through that reference level by a few ticks, then you don't want that trade anymore. You should get out. For example, let's say you have a 5-day trading range and overnight the market breaks out of the trading range and gaps open higher. The market starts to move with confidence to the upside and then pulls back to the open. As a short-term trader, I would enter near the open, but I don't want the market to trade through the opening print, because if it does it will probably try to fill the gap. My stop would be a few ticks below the open. So I entered the long trade based on the break out and the high confidence opening. Stop placement for longer term trades is not as simple.

[bathrobe]

Originally Posted by BennyHey »

I wanted to start a thread on stop placement. I know the most popular answer would be placing it behind the last swing high or low, but I wanted to hear what other ideas are out there. A few I know of are using ATR as a guide and using 2% of total acct size.

I know it is totally dependent on what type of trader you are, investor, swing trader, day trader etc. but I would appreciate any new ideas either that your using yourself or have seen or read about.

Best of luck guys can't wait to see some responses

My initial stop is 3 points, but I move it depending on where the nearest S/R level is and place it up to 3 ticks behind it depending on how strong I feel the trade is.

[jajuanm2]

Place it a couple of ticks below a level where you know your trade idea is wrong.

[bathrobe]

Originally Posted by jajuanm2 »

Place it a couple of ticks below a level where you know your trade idea is wrong.

I would add, if you are in a trade and the market does something unexpected (spike in volume, lack of volume, etc.) close up before a small loss becomes a large loss.

[xburbx]

HOD/LOD - Know where you are wrong

[Tams]

pay attention to the "Wall".


Where is it?
... is it moving? (some is pulling orders!)



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