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Strategies & Market Trends : NetCurrents NTCS -- Ignore unavailable to you. Want to Upgrade?

To: .Trev who wrote (4063)	11/9/2000 1:41:11 AM
From: Teresa Lo	Read Replies (1) \| Respond to of 8925

When I talk about stop losses, I talk about them in terms of keeping losses to a minimum. Most people enter stop losses way too far away from where they are supposed to enter them, and therefore, they get the effect where the moment they're stopped out, it market goes the other way, as if by magic. That alone tells the "trader" that he is entering them in the wrong place. If you are very cynical in your beliefs about the market, perhaps one way to get around it is not to trade at all. If we look at most of the greatest living legends of trading, they all stress risk and money management. How many ways can a trader protect his money and position, if not with a stop loss? For you, there may not be any reason to use stop losses at all, if you are sitting in front of the screen watching your trades all day and you're managing a small handful of positions. But if we extend this idea of not using stops, mainly to elude "market maker manipulation", then all you would ever use are market orders, since by definition limit orders are also sitting there, ready to be raped and pillaged, correct? Personally, I know that people have a weakness, and place stops where a "breakout" will happen, and so I take advantage of this, to get great fills, on the other side of their trade. As for other stuff, about peers, etc., the fact is that the majority has to lose in order for the minority to win. That's just a fact of nature, and that's why I don't worry about the other kids and their parents. They were doomed from the beginning anyway. The longer I trade and observe human nature close up, the more I realize how hard wired most human brains are...to the herd mentality. ispeculator.com Teresa