SVL 4.26% 22.5¢ silver mines limited

Stop Loss or no Stop Loss?

  1. 1,647 Posts.
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    Stop Loss or no Stop Loss?

    The following is not a ‘recommendation’ - it is simply part of my trading plan when trading on an MT4 platform. Preserving your capital is paramount and should form an integral part of any trading / speculative ‘punt’.

    When I am trading silver futures through a broker on an MT4 platform, I do NOT use stop losses!
    A stop loss is like playing poker and showing your hand. Your stop loss is seen on the other side. When liquidity allows, they will drop the price and take you out. My way to beat them is to trade only what I am prepared to lose. My stop loss becomes my total equity within the platform.

    If I trade (say) 5% of my bank on the platform at a time, then the 5% bank is my stop loss. If I am taken out on a margin call, I regroup, reload and when ready, go back in with another 5% of my trading bank balance.
    When I make some money, I withdraw the profits and resume trading with my 5% trading bank.

    If you trade with stop losses you will be taken out as soon as the other side can spike down to get you.
    If you are a novice trader and what I have said sounds like gobbledegook…………………. Don’t trade on these platforms! It has taken me many years and many margin calls to get up to speed. And yes, I still get smashed on the odd occasion.

    By the way, I ONLY ever trade XAG:USD. I never trade currency pairs and I NEVER take ‘short’ positions. I also stay away from the shark brokers like the spivvy Poms working out of deregulated places like Cyprus. Better to swim with local regulated sharks like AxiTrader, as I do.

    Trading on these platforms on margin gives you ultimate leverage and ultimate scope for profits................. and also financial devastation. For more 'controllable’ leverage, the options (SVLOB) represent great value, but you REALLY need to be on the ball and plan your exit well before expiry date to save your skin, especially if the exercise price is in danger of expiring ‘out of the money’.(most unlikely in this instance!)

    My first substantial buy of SVLOB was on 2nd Oct 2018. I have since added and continue to add. Suffice to say, in my humble opinion, SVLOB represents one of the greatest opportunities for wealth creation in my lifetime, given the likely high price of silver going into mid next year, now that the JPM manipulation phase appears to be in its final days.

    By the way, I could not care less about management and their overly discussed good or bad competencies. I am sure they believe in the future events and have their exit plan. With the potential price of silver next year and the fact that the company has the word "silver" in its name, the company is now on its move onward and upward.

    As always, trade safe, minimise your personal stress and trade what you are happy to burn!
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Mkt cap ! $266.4M
Open High Low Value Volume
23.5¢ 24.0¢ 22.5¢ $2.690M 11.73M

Buyers (Bids)

No. Vol. Price($)
46 2780665 22.5¢

Sellers (Offers)

Price($) Vol. No.
23.0¢ 70190 3
View Market Depth
Last trade - 16.11pm 25/02/2021 (20 minute delay) ?
-0.010 ( 2.39 %)
Open High Low Volume
23.5¢ 24.0¢ 22.5¢ 7606645
Last updated 15.59pm 25/02/2021 (live) ?
SVL (ASX) Chart
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