I don't use stops - I used to - then I discovered every one of 'em got hit..just by enough to take me out of a winner..
So, I quit using them, I went to a "mental stop" instead..
Brokers work against traders - say what you want - bash me all you want - I believe it 100%
they can't touch my mental stop...
SO, in response to this -
MONEY management is an ABSOLUTE to successful trading...
I always know my margin call point...with all the positions I have open, I always know how far the market has to move for me to get a margin call.
I made a spreadsheet that I list ALL of my current trades in - and it calculates what my margin use % is, and how many pips I'd have to be concerned about the market moving before a margin call
For myself, I like to keep total margin used at 4% or less...
at about 3.25% on 200:1 leverage - I'm at about a 1500 pip margin call point..
and yes, I've had to hold some trades for a while - but, they've all ended up being winners...
and yes, drawndown positions do affect your margin used % of course,
BUT, this is "figured" before the trade is ever taken..
I know this goes WAY against what we've all been taught - but 95% of us are losing all the time..
So, doing the same thing over and over again and expecting a different result is insanity right?
So, if you want drastically different results - you have to make drastic action changes right?
EVEN WITH a substantial amount of drawdown - I've still kept margin at or around 4% - yep, many think it's risky...
this market is all about direction - get that right and you'll be fine - set your system up or adjust your system so you know where you should be concerned about a trade LONG before a margin call on your account - set an alert - and text alert to your phone - keep your brokers phone # in your cell...
display the discipline to let a trade go if you know it's going too far...LONG before it goes too far to become a problem...