Should you place a stop loss in trading?

May 23 at 09:07
337 Views
32 Replies
Member Since Jan 15, 2024   33 posts
May 31 at 11:27
Stop loss is a must in trading. It’s not about avoiding losses, but managing them.
Member Since Feb 12, 2016   65 posts
Jun 01 at 15:18
alxeanderer posted:
Something happened yesterday that made me want to say a few words about the issue of stop loss. Of course, this is just my personal opinion. I have seen many times where the market has hit your stop loss and then moved up or down sharply in the direction you made. Do you have a feeling that if I don’t set a stop loss, I won’t lose money and may even make a profit? I have also seen many market situations where you hold on to the order and liquidate your position immediately. As a result, the market reverses and you make a lot of money. Are you very lucky? What I want to say is, you must bring a stop loss! Because what we are doing is a speculative thing, not a gambling thing! All the money you earn through luck will one day be lost through luck! Of course, it is also a science to bring stop loss and where to place stop loss to reduce friction and consumption.
IF you trade gold with low leverage I wouldn't advice you to put stop loss because your position should withstand huge Gold's volatility
Member Since May 08, 2023   66 posts
Jun 02 at 21:01
You should always set stop losses regardless of the situation, only time I wouldn't is when I am trading on Crypto.
Member Since Dec 28, 2023   36 posts
Jun 03 at 12:14
Ethanishere posted:
You should always set stop losses regardless of the situation, only time I wouldn't is when I am trading on Crypto.
Why you don't set it on crypto?
Member Since Oct 31, 2022   2 posts
Jun 03 at 13:16
Although I can't call myself as a professional trader, I always put a stop loss because this way I can control my losses. So I don't see anything wrong with using it.
Member Since May 31, 2024   6 posts
Jun 03 at 14:58
I always set a SL. The size of the SL depends on the asset. For ranging assets like FX, the SL will be small but trending assets like indexes they SL will be larger
Member Since May 08, 2023   66 posts
Jun 03 at 20:35
Gert12 posted:
Ethanishere posted:
You should always set stop losses regardless of the situation, only time I wouldn't is when I am trading on Crypto.
Why you don't set it on crypto?
Too volatile, too risky, could easily hit my SL and move to my TP in seconds, so I take on a reasonable risk and move from there.
Member Since Jun 15, 2010   7 posts
Jun 04 at 14:34
I'm with you the stop loss are parts of trading but the most important thing is to understand that losses are part of the strategy to win.
at the end the important things is to have a positive balance at the end of the year.
Every time I seen reports without loss I skip the strategy
Member Since Feb 12, 2016   65 posts
Jun 09 at 10:54
alxeanderer posted:
Something happened yesterday that made me want to say a few words about the issue of stop loss. Of course, this is just my personal opinion. I have seen many times where the market has hit your stop loss and then moved up or down sharply in the direction you made. Do you have a feeling that if I don’t set a stop loss, I won’t lose money and may even make a profit? I have also seen many market situations where you hold on to the order and liquidate your position immediately. As a result, the market reverses and you make a lot of money. Are you very lucky? What I want to say is, you must bring a stop loss! Because what we are doing is a speculative thing, not a gambling thing! All the money you earn through luck will one day be lost through luck! Of course, it is also a science to bring stop loss and where to place stop loss to reduce friction and consumption.
Yes, placing a stop loss in trading is essential as it helps manage risk and protect your capital. A stop loss order specifies the maximum amount of loss you are willing to tolerate on a trade, automatically closing the position if the price moves against you beyond a certain point. This risk management tool helps prevent significant losses and is a crucial component of any trading strategy.
Member Since Oct 08, 2022   2 posts
Jun 11 at 11:14
bardachok posted:
alxeanderer posted:
Something happened yesterday that made me want to say a few words about the issue of stop loss. Of course, this is just my personal opinion. I have seen many times where the market has hit your stop loss and then moved up or down sharply in the direction you made. Do you have a feeling that if I don’t set a stop loss, I won’t lose money and may even make a profit? I have also seen many market situations where you hold on to the order and liquidate your position immediately. As a result, the market reverses and you make a lot of money. Are you very lucky? What I want to say is, you must bring a stop loss! Because what we are doing is a speculative thing, not a gambling thing! All the money you earn through luck will one day be lost through luck! Of course, it is also a science to bring stop loss and where to place stop loss to reduce friction and consumption.
IF you trade gold with low leverage I wouldn't advice you to put stop loss because your position should withstand huge Gold's volatility
irrelevant, as stop loss is for managing risk and protect your account from big losses
Member Since Dec 28, 2023   36 posts
Jun 12 at 14:06
Ethanishere posted:
Gert12 posted:
Ethanishere posted:
You should always set stop losses regardless of the situation, only time I wouldn't is when I am trading on Crypto.
Why you don't set it on crypto?
Too volatile, too risky, could easily hit my SL and move to my TP in seconds, so I take on a reasonable risk and move from there.
But if there is so big volatility you may reach stopout in seconds? Or in crypto other situation?
Member Since Jun 12, 2024   6 posts
Jun 12 at 16:28
I have tested not using a SL with mixed results. I had much better profits but the drawdowns were large. I have decided to go back to using a SL
Member Since May 08, 2023   66 posts
Jun 12 at 22:23
Gert12 posted:
Ethanishere posted:
Gert12 posted:
Ethanishere posted:
You should always set stop losses regardless of the situation, only time I wouldn't is when I am trading on Crypto.
Why you don't set it on crypto?
Too volatile, too risky, could easily hit my SL and move to my TP in seconds, so I take on a reasonable risk and move from there.
But if there is so big volatility you may reach stopout in seconds? Or in crypto other situation?
I either invest in Crypto and hold for long time, or just scalp off minor gains in minutes, that way you don't need any SLs. The best thing you do about it is to sit down and keep track of your trades throughout the entire duration, it's seriously troublesome.
Sign In / Sign Up to comment
You must be connected to Myfxbook in order to leave a comment
*Commercial use and spam will not be tolerated, and may result in account termination.
Tip: Posting an image/youtube url will automatically embed it in your post!
Tip: Type the @ sign to auto complete a username participating in this discussion.