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Replies to #10210 on FOREX TRADERS
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Capitalist

06/01/07 12:02 PM

#10358 RE: ultimatepick #10210

hehe, I lost my net connection at work not long after I posted that long analysis so I'm just checking in from home now.

Cap, what he is saying makes sense in essence though right?

Sort of. Moving your stop further away than you usually do CAN be benificial. Keeping it too close means you lose too many trades even though the amounts are small. Having it too far away means you only lose a few trades but you lose a bundle on those. So somewhere in the middle is an optimum point.

However, another thing to consider is that such a point is a moving target. It changes as market conditions change. So we're never going to have a rule like "putting the stop at place where you'll lose 7.34% of your investment is the optimum point." That might be the optimum point for some trade but on another it will be different.