By email@example.com (Singapore Man of Leisure)
One reason we keep a record of our trades is so we can make logical decisions based on real data – not our biases or what other people say.
You know what?
7 out of 10 trades I’ve made, if I stomach the unrealised losses and “cheat” as in wait-and-hope for weeks, months, and years (let a trade turned into an investment), these losing trades will eventually be money making ones.
So why do I still use stop-loss to realise the actual loss?
Its because I remember vividly those 3 out of 10 trades that almost killed me!
I’ve let a small paper cut turned gangrenous…
Eventually having to chop off my fingers…
Better this than to lose a whole arm or leg right?
Some traders never do and let the poison reach their hearts. And they are heard no more…
So whether to use stop-loss or not for you is not through listening to others or reading books.
You have to experiment for yourself and let your track record tell you – based on hard data.
Crash got sound.
If you are so good at stock-picking (just lousy in entries) and all your trades will eventually make money, why indeed use stop-loss to protect yourself?
Or if you are …read more