14: Why "Stop-Loss" Orders Could Actually Be Creating More Losing Trades episode artwork

EPISODE · Jan 3, 2015 · 25 MIN

14: Why "Stop-Loss" Orders Could Actually Be Creating More Losing Trades

from The Option Alpha Podcast · host Kirk Du Plessis

In this session of The Option Alpha Podcast I'll explain why most traders think stop-loss orders help manage risk and protect them when in fact they end up creating more losing trades. Using the "Lazy Trader" program I'll show you with concrete numbers on live trades how a stop-loss order would create 50% more losing trades than if you did nothing at all and let the trade stay a loser all the way through expiration. You probably think I'm absolutely crazy for saying this, but listen in and see what the facts say about option probabilities.

In this session of The Option Alpha Podcast I'll explain why most traders think stop-loss orders help manage risk and protect them when in fact they end up creating more losing trades. Using the "Lazy Trader" program I'll show you with concrete numbers on live trades how a stop-loss order would create 50% more losing trades than if you did nothing at all and let the trade stay a loser all the way through expiration. You probably think I'm absolutely crazy for saying this, but listen in and se...

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14: Why "Stop-Loss" Orders Could Actually Be Creating More Losing Trades

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This episode was published on January 3, 2015.

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In this session of The Option Alpha Podcast I'll explain why most traders think stop-loss orders help manage risk and protect them when in fact they end up creating more losing trades. Using the "Lazy Trader" program I'll show you with concrete...

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