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Sam@ezeetrader.com

Using stop losses is a scam…..

Many traders around the world beleive the use of stops is a fools game. The reality is somewhat different as I demonstrate in today’s video. Retail traders either decide not to use stops themselves or they are told not to use them by very poor trading educators…

5 Comments

  1. Paul Young-Reply
    August 26, 2020 at 11:43 am

    Good one, Guaranteed stops where possible?

    • Charlie Burton-Reply
      August 26, 2020 at 11:44 am

      Shouldn’t be neccesary unless trading through big news….

  2. Jim-Reply
    August 26, 2020 at 1:44 pm

    But what about “my stop gets taken and then the market immediately reverses and goes to my target”.
    Ah, wait, you’ve covered that, well done!

  3. Catherine Smith-Reply
    August 26, 2020 at 9:39 pm

    Hi Charlie, I’m tickled pink that you made a video based on a question I asked – but I am very glad that you did because you addressed and debunked all of the arguments against stop losses that I’ve been listening to and influenced by – such as using mental stops, etc. (“Using mental stop losses is mental” – love it!)
    With me it wasn’t so much a case of wanting to be right, as I am rather good at being wrong, it seems! It was this idea that was fed to me that using a hard stop loss meant instant doom and eternal penury as the “Stop Loss Hunters” closed in to gobble up your cash. Now I know otherwise and thanks so much once again for addressing this subject. Great video.

    • Charlie Burton-Reply
      August 27, 2020 at 6:15 am

      No problem at all. I’ve covered this many times before as it’s a common theme globally but your message gave me a good excuse to cover the subject again. Yes the prblem with mental stops is that in the moment, without very strong discupline a trader is unlikely to exit where they planned to and so the hole mental stop thing doesn’t work. Anyway, glad it was of use!

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