Reasons why most traders lose in my opinion is emotional making decision. You have to follow a trading plan or system with discipline, otherwise you aren’t allowing your edge to work for you. Without this then any form of trading in this regard is simply gambling. Since it can’t be reproduced reliability.
i will never trade without one again, i got stupid with my trading last year and thought i could manage a trade without one, quickly found out i couldn't, the mental game was insane i just couldn't bring myself to pull the plug on a loosing trade! ended up loosing the majority of my account.
Treeny posted: Some pro traders claim they don't use a stop loss. I find this unbelievable.
It depends on what the strategy is actually. I say this, because there are some strategies where a trade stays open regardless of the loss or profit.
For example, if a trader opens multiple trades for EUR/USD, they might just hold the bad trades until the aggregate value of the trade basket indicates a profitability, and then close out the entire position of EUR/USD or whatever they happen to be trading.
In general however, real pro traders know the importance of money management, and the value of using a reasonable SL.
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