00:00Why I don't use estoppels, I'm going to share my trading experience with you.
00:05Have you ever taken a trade where your analysis was absolutely correct, your direction was also correct?
00:10But still your astoplos got hit and what is the most frustrating thing
00:17Astopolos then returns to the same direction shortly after being hit.
00:22The direction in which you took the trade
00:25This has happened to me several times and that is why I do not prefer Parastoplos in my trading approach.
00:32does
00:32But today I am not going to tell you that every trader should leave a stop loss.
00:38No, today I am just going to share my personal experience.
00:43Because every trader's strategy and risk management approach may be different
00:48Hello friends, welcome back to no chart finance.
00:53And I am again present before you with a Navy video.
00:56Today's topic is a bit personal.
00:58I'll tell you why I don't use a stop loss.
01:01And how has my experience been with stop loss in high volatility markets?
01:07Because for me the biggest problem is not with the concept of stop loss.
01:12The problem arises between market behavior and the placement of stop losses.
01:17When did Astop loss become a problem for me?
01:20See, when you take a trade, you have an analysis.
01:26Do you think the market may move in this direction?
01:30Now you apply a stop loss, let's say this is my maximum expected loss.
01:37If the market comes here, I will exit the trade
01:41This sounds perfectly logical, but the market doesn't always behave that way.
01:48As we want, especially when there is a lot of volatility in the market.
01:53The price can move rapidly up and down, then up again, then down again, and so on.
02:01And in such a situation, if your stop loss is very close then there is a 100% chance that a temporary
02:08The move could also hit your stop loss
02:11My personal experience: There have been many times in my personal experience that I took a trade.
02:19My analysis was that the market would move in a particular direction but suddenly the volatility in the market increased.
02:28The price moved a little against me and my stop loss was hit.
02:33I got out of the trade but the story did not end here. After some time the market came back and the same
02:42went in the direction
02:43The direction in which my original analysis was, now the question is whether my entire analysis was wrong, not always.
02:51Many times the temporary volatility move of the market hit my stop loss and then the market returned to its original level.
03:00gave the move
03:01This became the biggest learning point for me.
03:05High volatility can cause sudden big moves in the market.
03:10Sometimes due to news, sometimes due to global market moment, sometimes due to some unexpected event.
03:18And at such times the price may move above or below a level for a few seconds or minutes.
03:25It may then come back and your stop loss is within such a temporary moment
03:31So it can get triggered and after that the market can also reverse.
03:39This means that your loss did not occur simply because your market analysis was completely wrong.
03:46Sometimes your losses can also be due to a combination of market volatility and a stop loss placement.
03:55Is
03:55But does this mean that a stop loss is wrong? No, I am not saying that it is wrong.
04:01This is very important
04:02A stop loss is a useful risk management tool that works perfectly for many traders.
04:10My point is that in my personal trading experience, I do not prefer to depend on a stop loss.
04:18The biggest limitation for me is that a stop loss is based on the price
04:26Makes decisions at a specific level
04:28I don't see why the market reached that level, whether it was there for just a few seconds or for real.
04:36The train has changed
04:36A stop loss doesn't matter.
04:39The level is hit and the position is exited
04:42This is what I haven't always been comfortable with in my trading approach.
04:47Because I don't just want to see if the price reaches this level or not.
04:52I don't even want to see what the price is doing at this level
04:57Is this just temporary volatility or is there a rejection?
05:01Is the price coming back into the range or is there actually a trend change?
05:07Then how do I manage risk?
05:10Now naturally the question will arise that if there is no stop loss then how to manage risk?
05:16This is where I plan my position in advance.
05:21Before taking a trade, I think about what will happen to my position if the market moves against me.
05:28Usher will be
05:28What should my position size be? What is my maximum expectable risk?
05:34And how will the risk be managed according to my strategy?
05:39I also use hedging as a risk management approach in my trades.
05:44But what is hazing, how does it work, and in what kind of situations can it be used?
05:51I have already made a separate detailed video on that.
05:55If you haven't seen that video, go and watch it.
05:59I'll put it in the description
06:01a very important thing
06:14Second risk management approach, risk will always be there
06:17First, you need to understand your strategy, your capital, your risk tolerance, and your position sizing.
06:25The biggest learning for me has been that the market cannot be controlled.
06:32But we can plan our trade.
06:36I have seen from my experience that in high volatility many times after the stop loss is hit
06:42The market moved back in the same direction.
06:45And for this reason, I personally don't use a stop loss as my primary risk management approach.
06:53I focus more on things like price behavior, position sizing, risk planning and hedging.
07:01So why don't I place a stop loss?
07:04Because in my personal trading experience
07:08During high volatility swings, a stop loss often took me out of the trade during a temporary market moment.
07:17And after that the market went back to my original direction
07:22But this does not mean that stop loss is wrong and it also does not mean that
07:30Every trader should place a stop loss. This is just my personal trading approach and experience.
07:37If you found my personal experience useful, please like the video.
07:42And if you want me to cover how stop loss works in high volatility in my next video.
07:49And what mistakes do traders make while placing stop loss, we will discuss this with practical examples.
07:57should I do it
07:57So definitely write stop loss in the comment and if you like trading, psychology, risk management, financial market education
08:08And if you want to learn about backtesting strategy then don't forget to subscribe and follow no chart finance
08:16I will meet you in the next video, till then trading with a plan not with emotion
Comments