The Trader Who Trades with No Stop Losses

Submitted by Marco on 9 May, 2006 - 17:53

I Pity the Fool who Trades with No Stop Losses... And That Fool Was Me. After a series of losses, you start to realise that stop losses are a trader's best friend. And that's exactly what is happening to my account as of late. But it doesn't matter - you can't expect to profit all the time... all that matters is that when your trades are profitable - you let them run and when they are not - cut them short.

A string of losses in trades definitely gives a dent in one's spirit. I pity the fool who doesn't trade with stops. That fool was me, once upon a time. I had a trade a few years back which I kept holding on with the wish that the stock would recover. And when that happened, when I finally closed the trade I swore that I would never ever trade any market be it stocks or forex without stop losses being set at the time I entered the trade.