Maybe how to place stop loss each trader has own way, some trader may prefer to use the risk-reward ratio to determine how much stop loss will be placed on every single trades, but some another trader maybe giving place wider stop loss than profit target with reason-giving more move room of the price so will often hit target profit, and experience will giving us the lesson and take what the best will be taken.
Placing stop loss is very important. Most traders don't utilize stop loss. They generally stay in a dread of losing trade. Then again taught traders have a methodology and a course of action. That proposes utilizing a stop-loss and a take-profit. When you trade along these lines you are not assessing or betting and you comprehend what the conceivable result can be before you take the trade.
Stop loss is important and it’s part of risk management, so traders can minimise risks and maximise their profits. There is no fixed stop loss. Every trader should risk capital as per their risk tolerance. If you’re a new trader, then you should take less risk per trade.
Traders should place stop loss strategically to minimize their losses and protect their profits. Stop Loss is a critical trading tool as it helps traders avoid losing all their investments in a single trade.
Placing a stop loss requires experience. There are different strategies to place a stop loss. But I recommend focusing on the basics first. Always consider the support and resistance levels as prices would bounce up or fall down at certain levels. Place the stop loss at some points above or below(according to support and resistance) from where price could change direction.
Stop losses are definetely pain in the neck in the process of allocating your deal, but they are significant if you want to make yourself desciplined and weight up all of your ideas before you actually act. As for me, setting up stop losses makes me ask myself whether I am sure that this or that deal is good to open. It is something like 2FA for me, where I keep asking myself questions and this makes my trading more consistent and coherent. I feel that the secret of good trading is in consistency, so the more filters you have for making decisions, the more sober your trading strategy becomes. Therefore, you should treat stop losses as an integral part of trading and make a habit of using them in trading.
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.