Stops and news related moves - Stocks and ETFs Trading | futures.io
futures.io futures trading


Stops and news related moves
Started: by mcteague Views / Replies:215 / 4
Last Reply: Attachments:0

Welcome to futures.io.

Welcome, Guest!

This forum was established to help traders (especially futures traders) by openly sharing indicators, strategies, methods, trading journals and discussing the psychology of trading.

We are fundamentally different than most other trading forums:
  • We work extremely hard to keep things positive on our forums.
  • We do not tolerate rude behavior, trolling, or vendor advertising in posts.
  • We firmly believe in openness and encourage sharing. The holy grail is within you, it is not something tangible you can download.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.


You'll need to register in order to view the content of the threads and start contributing to our community. It's free and simple, and we will never resell your private information.

-- Big Mike

Reply
 
Thread Tools Search this Thread
 

Stops and news related moves

  #1 (permalink)
Elite Member
New York NY USA
 
Futures Experience: Intermediate
Platform: esignal, ninjatrader,
Favorite Futures: Stocks
 
Posts: 107 since Oct 2012
Thanks: 53 given, 29 received

Stops and news related moves

There are some people who think you should not bother to use stops at all. But that is another discussion.

The question I have is how people feel about moving there stops when a market move appears to be news or rumor driven.
Take Fridays drop. Some people overreact to rumors of a minor rate increase, or some people worry about election issues and the market drops a bit. But has your trade really changed?

You can choose to move your stops out of the way. And it is true that probably in a few days the market will come back up . So avoiding the actual loss of real money is a go. But on the other hand if you have taken positions based a particular risk reward calculation, moving that stop out of the way as it were completely distorts your calculations and trading strategy.

Personally I use fairly wide stops. So this only comes up for me in rare occasions. But it is an interesting question to ask. Why have stops if you are going to move them. But if the market move is based an bs why stand there and lose your money.

I am just wondering how other people have resolved this dilemma

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
New York NY USA
 
Futures Experience: Intermediate
Platform: esignal, ninjatrader,
Favorite Futures: Stocks
 
Posts: 107 since Oct 2012
Thanks: 53 given, 29 received


I may repost this, or something similar, to money management. I think though this question comes up more often in equities because there is no expiration.

Reply With Quote
 
  #4 (permalink)
Market Wizard
London UK
 
Futures Experience: Beginner
Platform: CQG
Favorite Futures: Futures
 
xplorer's Avatar
 
Posts: 1,809 since Sep 2015
Thanks: 3,298 given, 2,383 received
Forum Reputation: Legendary


mcteague View Post
There are some people who think you should not bother to use stops at all. But that is another discussion.

The question I have is how people feel about moving there stops when a market move appears to be news or rumor driven.
Take Fridays drop. Some people overreact to rumors of a minor rate increase, or some people worry about election issues and the market drops a bit. But has your trade really changed?

You can choose to move your stops out of the way. And it is true that probably in a few days the market will come back up . So avoiding the actual loss of real money is a go. But on the other hand if you have taken positions based a particular risk reward calculation, moving that stop out of the way as it were completely distorts your calculations and trading strategy.

Personally I use fairly wide stops. So this only comes up for me in rare occasions. But it is an interesting question to ask. Why have stops if you are going to move them. But if the market move is based an bs why stand there and lose your money.

I am just wondering how other people have resolved this dilemma

Hi mcteague

To me this question has no fixed answer.

It's a bit like the dilemma 'do I take some good profits here or do I wait knowing that either my current profits will be diminished or they will be enhanced?'.

I believe it's all a matter of experience which means that an experienced trader will know that in some occasions it is appropriate to move the stops out of the way, knowing it is a risk. But they will have done the math and have accepted the risk.

Reply With Quote
The following user says Thank You to xplorer for this post:
 
  #5 (permalink)
Elite Member
Prince George BC Canada
 
Futures Experience: Advanced
Platform: IBs TWS
Broker/Data: IB
Favorite Futures: Stocks
 
deaddog's Avatar
 
Posts: 579 since May 2013
Thanks: 88 given, 618 received

Futures Edge on FIO
Stops allow you to take a small loss to avoid taking a large loss.

You calculate the risk going into a trade. If you adjust your stop you are increasing your risk so hopefully the potential reward is there to offset the additional risk.

It is hard to find the Truth when you start your search with a preconceived notion of what the Truth will be.
Reply With Quote

Reply



futures.io > > > > Stops and news related moves

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)
 

Anthony Drager: Pulling the trigger with confidence

Elite only
 

Leo Murphy: The Art and Science of Technical Analysis

Elite only
 

FuturesTrader71: Ask Me Anything

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
huge price moves, no news... nourozi Traders Hideout 9 February 7th, 2015 11:39 PM
Going to be a busy news day...(non trading related) Gary Off-Topic 0 June 26th, 2013 11:51 AM
As Obamacare Moves Forward, What Exactly Happens Now? Quick Summary News and Current Events 0 June 28th, 2012 01:50 PM
How many contracts moves the market TrendTraderBH Traders Hideout 3 May 16th, 2012 06:35 PM
Stops, trailing and breakeven stops jonc NinjaTrader 4 November 9th, 2010 01:06 AM


All times are GMT -4. The time now is 09:18 AM.

no new posts
Page generated 2017-01-24 in 0.09 seconds with 20 queries on phoenix via your IP 50.16.5.192