Stop Using Stop-Loss Orders- Stops Don’t Work! (What Larry Connors And Curtis Faith say About Stoplosses)

Stop Using Stop-Loss Orders- Stops Don’t Work! (What Larry Connors And Curtis Faith say About Stoplosses)

This very short article defines what a stop-loss is. We conclude stop-losses seldom work and it’s better to diversify across asset classes and time frames. We quote what Larry Connors and Curtis Faith say about stop-losses. What is a stop-loss? Risk management is a very important factor when determining whether a trading strategy is profitable…

Stop-Loss Doesn’t Work (Mean-Reversion And Stops)

Do stop-losses really work? We are “brainwashed” to believe that you should always have a stop in place. But, perhaps surprisingly, stop-losses normally just make a strategy perform poorly. Stop-loss doesn’t work for the majority of trading strategies. A better solution is to diversify into different markets and time frames. Moreover, always trade smaller than…