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Soultrader

Debate: Hard stops or mental stops?

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WOW 10 points huh? That seems like to me alot of any thing on any market. I am guessing you are talking ES because 10 points on other popular markets doesn't make sense. 10 points on the 6E is 1000 ticks. You would have to be swinging for the fences for me to justify that size of stop. The way that I trade that would suggest to me that I was late and to wait. I don't use a standard SLM stop. I don't know very many people personally that do. I have read so far in this thread that if you don't use some sort or SLM you are not going to succeed and you are insane and you wont last long.

 

To me if you have to use a SLM then you are not that confident in your trading. I don't use a SLL either. I do exit trades that don't work. My stop loss area is usually 1-2 ticks on the bonds and 2-3 maybe 4 on the ES (depends on the structure of the market). If it get 2 ticks on the bonds I just hit the close button on the trade and that elects a market order. But I DO NOT want my broker to execute a market order on the bonds just because it went 2 ticks against me. Sometimes on the bonds it will hang for a bit and that allows me to see if its going to hold or not.

 

All this talk of SLMs is new since the advent of the internet. Back in the day when most of the trading was in the pit. You were your stop. you didn't go to your broker to execute a SLM. You simply just went flat.

 

Also never leverage down. If you or if you know any one who is doing that strongly suggest to not do that. If you can advise I would suggest to advise against leveraging down. NO ONE is big enough to just keep buying NO ONE. Just go ask any one who traded bonds in the late 80s. Go ask the folks at Lehman Brothers. Cut your losers quick and let your winners run.

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