Debugging the Stop Loss Myth..

Often what comes across my Desk is Traders Applying Stop losses into their trades. Well, I'm here to tell you that I never use stop losses.

Scary, huh? NO. I see Monthly Gains with the use of no stop and a change in strategy..

You see usually when Traders are using Stop Losses they look for Risk and Reward. But what affects risk and reward? Is Risk and Reward the same for every Trading Scenario?.. The answer is no.

When you put your stop loss in and you set your Take profit, you are deciding where you would like to exit on both sides, not the market. There is no factual way of deciding the REAL probability of you hitting your TP before your SL.

I appreciate it may be UNPOPULAR but I just do not trade with a stop loss (unless in EXTREME circumstances). I drop my risk substantially and I diversify. I incorporate Fast hedging and Risk management Strategies to suit any Drawdown.

After all, what happened to YOU on this Euro Fall? How many stop losses did you get taken out on? Did you get any gains on the other side? Did you trade the other side?

In short, Stop losses simply are not the be all and end all.. For some Traders There's nothing wrong with using them, but for most Traders It's just an EASY way for people to feel comfortable. Why not rather scale in and out of markets over time with LOW or mitigated fully risk. You can eliminate your position WITHOUT an SL!

Take a risk (or perhaps Take LESS risk) by not using stops.. Just an idea!

Be Open to What is achievable and possible.