iMusingKiMi
Sergeant
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If you know how to diversified portfolio, then you can trade without stop loss. This is the difference between firm and retail trading.
If you know how to diversified portfolio, then you can trade without stop loss. This is the difference between firm and retail trading.
So true. Anything can happen at any time. I remember just few years back when there was a glitch in the PG stock which then quickly rippled in Forex (I think JPY pairs were hardest hit with 1000+ pips in a few seconds)... and there are many similar examples. Always make sure your funds are secured with SL (not that a gap can't jump your SL, but if it doesn't you'll be way better than just to get a margin call).Spreading the risk around doesn't mean a forex pair can't move hundreds or even thousands of pips against you. It doesn't mean a stock price might not go from $500 per share to $0.28 per share. Even if you only own 2 shares, wouldn't you have been far better off to have SL in the $350-400 range?
There might be a power outage, or your internet may fail. In the meantime the price goes against you...You can trade without stoploss if you are sitting at your charts the whole day. Still its not a good idea to do this as often you see a huge movement in the market in seconds of time.