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Strategies & Market Trends : Your Worst Trading Enemy.. You -- Ignore unavailable to you. Want to Upgrade?

To: shawnwolff who wrote (110)	1/19/2001 7:34:03 AM
From: warren harris	Respond to of 223

Great thread!!! A lot of thought provoking information is being shared. On the subject of Stops -- I have been placing, or attempting to place them on most orders I make now. The question is, is how far back to place them. I guess you could use a percentage, i.e.. I'm willing too accept a "15"percent loss before closing the position, or a fixed amount...say, X number of points below my entry. I read an exert from a book, " The Wisdom of William D. Gann" a trader in the twenties who advised always protecting a trade with a stop loss 3-5 points back of the entry. That seems a little far to me....but would help from being taken out before you're ready. Mental stops may work for some, but for me, I'm guilty of the "its going to come back" and holding at ever increasing losses. Several of these are still with me ranging from -30 to -60 percent. Is there an advantage/disadvantage of stop orders, vs stop limit orders or vice versa? I placed a stop on a purchase the other day a point behind my entry and was taken out the following day when the issue opened a point below my stop then immediately proceeded to trade upwards. I guess if it was easy then we'd all be rich (VBG). Again, a great thread and comments/thoughts appreciated. Warren