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Never. I always place my stops far away enough so that it is unlikley for me to get stopped out. In doing so, my position size is smaller. If the trade works out then I add size then start to scale out as it goes higher.
Never. I always place my stops far away enough so that it is unlikely for me to get stopped out. In doing so, my position size is smaller. If the trade works out then I add size.
"far away" what does this mean? you're still playing it by luck as the guy having a tight stoploss hoping it wont get hit 😴 obviously tight stops are the best and only way to place stops but you need thousands of hours to understand where they actually placed thats when luck does not play a role but you having it far away its a joke you have no objective system to rely on get to back to fucking work on these charts
@Gonz Let me explain it to you so that you might understand it better. I won't put my stop 50c away if I'm trading a $1 stock. Get it? You have to keep your risk in dollars always the same on every stock. I trade to the chart - Support and Resistance levels.
Knife catching can be rewarding and if you got paid big a few times it will reinforce a possibly bad habit. If you waited for that 2nd little pullback and it never happened for a few times and the train left without you eventually you will no longer wait. The dilemma of being right with your idea but rules say no yet your instinct was proven correct. When are you going to give in to your intuition? only way to improve this situation imo, do stats on specific trading vehicles.
Never. I always place my stops far away enough so that it is unlikley for me to get stopped out. In doing so, my position size is smaller. If the trade works out then I add size.
Tight stops can work only if you trade one currency or individual stock every single day and master where their support and resistance are. Takes hours and hours of trading the same thing to figure it out. It is still not gonna be perfect every time but your entry and exit will be 10 times better over time.
When I'm scalping the E-mini S&P 500, I have 2 different brackets depending on the volatility. I enter trades on stops only. 4 tick profit / 10 tick stop is one bracket and 8 tick profit / 12 tick stop is the other. That's it. 90% of the time I'm using the 4/10 bracket and only about 10% of the time the volatility is enough that I put on the 8/12 bracket. Will I let a trade come all the way back and hit my stop if my thesis changes? 95% of the time no. I'll get out with 2 to 6 tick loss when I recognize I'm wrong. It's not a price action stop and yes sometime its gets hit but that's just part of the game. It works for me in the long run.
I used to get stopped out a lot, which is a danger for a number of reasons; the big one being that when you get continually tagged out of good trades where the market confirms your original thesis (so for example, you're short on EUR/USD and you get in at an intra-day high, however price runs a tiny bit, stops you out, then keeps ripping to lows) I found at points like this it's very easy to become too relaxed on the risk management front and you begin taking on more size and you trade more and more often with larger stops which of course is a recipe for disaster. "Sporadic decisions don't produce sporadic results" and what's also at fault is your entry. If you focus on getting a really REALLY good entry, you can afford to have a tight stop. I like to place my stop at a point where market structure must undergo a significant break, and so therefore, I never end up chasing trades, trading with too much size or trading too often.
👉 It seems a lot of our viewers are non-subscribers. Make sure to subscribe to our youtube channel as we upload regular videos! If you hit the “Bell” icon (🔔) you will receive a notification on youtube every time that we upload a video on our channel. Bell icon hitters are super fans of our channel 🥰
Never. I always place my stops far away enough so that it is unlikley for me to get stopped out. In doing so, my position size is smaller. If the trade works out then I add size then start to scale out as it goes higher.
Never. I always place my stops far away enough so that it is unlikely for me to get stopped out. In doing so, my position size is smaller. If the trade works out then I add size.
"far away" what does this mean? you're still playing it by luck as the guy having a tight stoploss hoping it wont get hit 😴 obviously tight stops are the best and only way to place stops but you need thousands of hours to understand where they actually placed thats when luck does not play a role but you having it far away its a joke you have no objective system to rely on get to back to fucking work on these charts
@Gonz Let me explain it to you so that you might understand it better. I won't put my stop 50c away if I'm trading a $1 stock. Get it? You have to keep your risk in dollars always the same on every stock. I trade to the chart - Support and Resistance levels.
From experience, your stoploss strategy depends on which time frame u trade.
Thank you Mark, great video!
The answer to the first question? No, almost never does my stop loss placement make sense, lol
It depends on your style. I use stoploss half of ATR.
That third example, personally I would never look to buy unless I had a very clear reversal signal. I'd be selling at that pullback.
Knife catching can be rewarding and if you got paid big a few times it will reinforce a possibly bad habit. If you waited for that 2nd little pullback and it never happened for a few times and the train left without you eventually you will no longer wait.
The dilemma of being right with your idea but rules say no yet your instinct was proven correct. When are you going to give in to your intuition? only way to improve this situation imo, do stats on specific trading vehicles.
Never. I always place my stops far away enough so that it is unlikley for me to get stopped out. In doing so, my position size is smaller. If the trade works out then I add size.
Tight stops can work only if you trade one currency or individual stock every single day and master where their support and resistance are. Takes hours and hours of trading the same thing to figure it out. It is still not gonna be perfect every time but your entry and exit will be 10 times better over time.
Great video, thank you!
When I'm scalping the E-mini S&P 500, I have 2 different brackets depending on the volatility. I enter trades on stops only. 4 tick profit / 10 tick stop is one bracket and 8 tick profit / 12 tick stop is the other. That's it. 90% of the time I'm using the 4/10 bracket and only about 10% of the time the volatility is enough that I put on the 8/12 bracket. Will I let a trade come all the way back and hit my stop if my thesis changes? 95% of the time no. I'll get out with 2 to 6 tick loss when I recognize I'm wrong. It's not a price action stop and yes sometime its gets hit but that's just part of the game. It works for me in the long run.
if you use tight stops you're basically saying you know how to call tops and bottoms. i assure you you don't know how to call tops and bottoms.
Mark been looking at some John Burford stuff interesting
You are the best Aryan.. keep up the good work
Good one Mark.
I used to get stopped out a lot, which is a danger for a number of reasons; the big one being that when you get continually tagged out of good trades where the market confirms your original thesis (so for example, you're short on EUR/USD and you get in at an intra-day high, however price runs a tiny bit, stops you out, then keeps ripping to lows) I found at points like this it's very easy to become too relaxed on the risk management front and you begin taking on more size and you trade more and more often with larger stops which of course is a recipe for disaster. "Sporadic decisions don't produce sporadic results" and what's also at fault is your entry. If you focus on getting a really REALLY good entry, you can afford to have a tight stop. I like to place my stop at a point where market structure must undergo a significant break, and so therefore, I never end up chasing trades, trading with too much size or trading too often.
If you have a pattern of where you stopped out, why not put the entry there instead?
We don’t get the chance to appreciate you
Five down thumbs on what's very well explained and logically sound; some very jealous people/businesses in this world!