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
Good one, Guaranteed stops where possible?
Shouldn’t be neccesary unless trading through big news….
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!
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.
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!