Friday, June 11, 2010

Friday Notes - Stop the Point-Based Stops!

Here are today's thoughts in response to several emails from frustrated traders re: point-based stops, as well as some NBA Finals trading parallels.


steve said...

I heard a great comment in an interview on Bloomberg radio today (in the car of course) with a former pro soccer player and coach. The context of his comment was about over-coaching kids in soccer, and he said "the game is the best coach". Couldn't apply to trading more! Have a nice weekend!

Rich Harris said...

Hi Don,

Do you enter your premise based stop limit or stop market order immediately upon your entry order being filled or do you just make a mental note that you file away for when that premise is no longer valid and then enter the stop order?

In the past I certainly have paid tuition trying to manage risk with point based stops. I am a believer in premise stops but I don't enter the order it until the market is there. I know I sometimes let the loss run a little too far and regret it. It is a matter of discipline, discretion, and flexibility.

Thank you for your thoughts.

כןעצשמ said...

Hi Don.
you should make a video on scratching trades too.