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.
You are right; and it’s not common scenario actually; as I see maximum pro traders are interested on SL since, they know the value of if.
A lot of experience of trading is required to use Stop Loss. It is not possible to observe the market 24 hours a day so stop loss has to be used. Stop Loss must be used to target money management or risk management. Stop-loss is a part of good analysis. It is never possible to be a successful trader by trading without stop loss. Because risk cannot be managed without stop loss.
Stop loss is a MUST. You cannot afford to miss it, unless you are so sure when it comes to trading. Sto loss helps to protect you from loss if the market are going the way that you do not want it to go
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.