ZzzzzzzZ posted: Ima think if you don't wanna losess don't put sl at all. Ima put sl not often. But Ima think sometimes they're really needfull.
Any professional trader uses stop out just in case, I don't fail to use it, as a matter of fact with it I actually make much profits, because I take proper time before I place any trade, knowing that making a wrong or hurry calls will lead to my stop out being hit, so i take time to analyse before placing any trades, this give me higher accuracy in identifying trends and making profits riding it.
If you are a short term trader or scalper, stop loss is important for you. Whether you place the stop loss or keep in your mind you need stop loss. Otherwise if you open a trade and market goes trending in your opposite direction, you will get margin call.
UweMoench posted: If you are a short term trader or scalper, stop loss is important for you. Whether you place the stop loss or keep in your mind you need stop loss. Otherwise if you open a trade and market goes trending in your opposite direction, you will get margin call.
Very true, even with my stops as a day trader, if by any chance market reverses, I don't wait for it to take my stops, instead I exit with very little loss and wait and reenter to make more profits, this is how I accumulate profits and add patient to it, hardly have a negative trades, because I'm always waiting at the right time and end products is positive in large order.
i do reversals only and pullbacks. i never trade with the trend.
so i spot exhaustion points. i accept the trade goig against me, then i make a second entry a bit bigger than the previous one. the second entry is rarelly wrong, my stop losses, both of them are just above or below the second entry.
i only trade london session and when the market spikes up i try to sell it.
if it goes down i buy it.
no break outs no trend continuation for me.
there is always a stop at the first entry but its far and away, it never gets hit. its only there to prevent an account blow from banks intervining with the market.
i also only trde 4 major pairs andsome exotic usd crosses, have tested it in the worst kind of conditions and the 2nd entry is almost never wrong.
so yeah a stop loss is essential even if far and away. you never wanna blow an account or take enormus drawdowns that can never be recovered.
worst case scenario if my stop gets hit at second entry i need 4 winners to recover it
With stop loss you will always be the winner, I don't even allow bad trades to hit my stops before I ecut and reenter when things setylest, people wonders why i always make profits each day, it because with the trading hours, i take loss when I see I'm wrong, and when the losing is very little, and make huge profits when I'm in the right, so each day my sum of profiting trades is highly greater than losing trades if any losing occurs, this is one of the benefits of stop loss and makes you keep your profits.
On Thursday I was making like $9800 profits on the live account with deposit total balance of 79k, the live which i use to copydirect trades to this demo, while the live was already made profits on London section to the amount of 9800, the demo here was on profits of $1800. Later I took a buy on GBP/USD that went South, I could not wait for reversal and I closed the negative trades and the Live account I made $9800 I close negative trades on it, around $2800 and still have $6000 profits for the day, while the demo I took around 1k plus lose to which is $1800- $1200= still $500 plus profits for the day. Even the trades later went in my favour but I don't care about that because I have a deep discipline trading plans and strict money management for any accounts over a thousand. I later made back extra $1500 on the live account to bring total profits to $7500 for that day while the demo around $1000 plus profits for the day too, then I closed before U.S. opens.
On Friday I made a very sweet effortless profits of 15k on the live account and 5k plus on the demo account, I closed before the news and went resting for a very profitable week.
Now this is the essence of having stops to protect your already made profitsvor even exit before it gets to it. Stop can make you have a very good money management and very high end profits if you are disciplined on it.
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