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7 Benefits of using stoplosses

WeTrading (systemafx)
Aug 24 2020 at 21:28
200 posts
Stop Loss ... stop your emotions

Follow the momentum
vontogr (togr)
Aug 25 2020 at 13:22
4862 posts
Actually do not confuse stop loss with stopping a loss.
SL is actually loss. It close trade at defined level and decrease your balance and restore your equity.
Yeah it is necesarry to do sometimes. But be carefull usng too much of stop losses will bring you gues what?
Too much loss on your account.

LongVision
Aug 25 2020 at 15:25
254 posts
Stoploss is must but where to put stoploss depend upon type of strategy.

1.For trend following strategy small Stoploss should be used.
2.For countertrend strategy large Stoploss should be used as a protective stop in such a way that trading position survives say 95% of time.

The market will trade through it’s path of least resistance .
Dictiony
Aug 26 2020 at 00:53
231 posts
Fixed stop loss strategies are popular because they make the thought and decision-making process much easier.

Michihito
Aug 29 2020 at 05:13
298 posts
Yes you are right. For short term traders stop loss is very important. It helps a trader to reduce his risk. But it needs good experience to place a well calculated stop loss. Otherwise you will hit stop loss if you don't know how to where to place a stop loss.

SofieAndreasen
Sep 03 2020 at 14:43
614 posts
TraderProHungary posted:
1; It allows you to grow your profits by gradually without everything you earn, e.g. If you make profits if let's say $500 you can risked $50 from it to chase more profits by using stoploss to that effect.
2; It allows you to control and check your drawdown to minimum, personally I hate d rawdowns above 20%, so i avoid it at all cost by planning my trades with stoplosses well placed.

3: It allows you to have a very good money management.

4; With stoplosses well placed, you can always control your emotions of not letting floatings of huge negative openings.
5; You don't have to worry about spikes, as your accounts are protected by it.

6; You can always plan and know how much you stand to loss if things goes opposit, and if you are not kind traders that stays full staring on their trading computers all day.
7: This is my favourite part, Stoploss can actually allow you to risk very little and gain more if only you are a patient trader and always plan well. E.g When you have $1k, You can risk $50 and target to earn $250 and above or Risk $100 and target 500 and above.

Questions are welcomed


Yeah, stop loss is important for good money and risk management. However, I prefer trailing stop loss. It reduces my loss significantly.

AliaDare
Sep 04 2020 at 00:56
632 posts
There are many types of stop-loss benefits. Many traders who do not use stop loss face unexpected losses for this reason. Those who use stop-loss are usually within the discipline. Money management and risk management cannot be followed without using a stop loss. If a trader wants to be successful in trading, he must use stop loss.

Russel Gutierrez (russellgutierrez)
Oct 07 2020 at 06:50
56 posts
The main benefit of stop loss is you don’t have to monitor your trades all the time and it limits your losses. You have a better control of your account and a proper money management.

lauranutt
Oct 07 2020 at 06:52
36 posts
A stop loss order is an order to close a position at a certain price point/percentage in order to limit one's losses.

WeTrading (systemafx)
Oct 07 2020 at 07:41
200 posts
LongVision posted:
Stoploss is must but where to put stoploss depend upon type of strategy.

1.For trend following strategy small Stoploss should be used.
2.For countertrend strategy large Stoploss should be used as a protective stop in such a way that trading position survives say 95% of time.


I think that is the opposite

Follow the momentum
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