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Stop Loss/Margin of Safety

Marketmultitool
Jan 19 2020 at 06:19
69 posts
I always try to set my stop loss at 0.75%- 2% max of the account size ,if that's not possible at the time I wait for the next signal ,that's the great thing about Forex lots of opportunities ,you can apply this most successfully on extreme moves outside the normal movement of the trend ,BB indicator for example is useful for spotting these moves ,other patterns like breakout moves after long consolidation are a bit more tricky because it's normally a fast move with a -60% re test of the full candle then a bounce higher.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.

Strength and honor.
Jonny87
Jan 19 2020 at 08:18
34 posts
Stop loss is very important. Because there is no trader who want to loss his capital much. Stop loss limits the loss. Every traders want to secure their capital. By using of stop loss a trader can trade in the forex market without any tension. I am also a trader. I am currently trading with Tpglobalfx. I always use stop loss while I am trading in the market.

momo3HC
Jan 19 2020 at 21:04
168 posts
Jonny87 posted:
Stop loss is very important. Because there is no trader who want to loss his capital much. Stop loss limits the loss. Every traders want to secure their capital. By using of stop loss a trader can trade in the forex market without any tension. I am also a trader. I am currently trading with Tpglobalfx. I always use stop loss while I am trading in the market.

Sure. SL isn`t invented just for nothing. 😉

LyudmilLukanov
Aug 30 2020 at 15:18
461 posts
Marketmultitool posted:
I always try to set my stop loss at 0.75%- 2% max of the account size ,if that's not possible at the time I wait for the next signal ,that's the great thing about Forex lots of opportunities ,you can apply this most successfully on extreme moves outside the normal movement of the trend ,BB indicator for example is useful for spotting these moves ,other patterns like breakout moves after long consolidation are a bit more tricky because it's normally a fast move with a -60% re test of the full candle then a bounce higher.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.

That’s a good strategy. I prefer trailing SL in breakout trading. I usually take 1-2% risk per trade.

Kond
Aug 30 2020 at 16:20
5 posts
If your SL level 0.75-2% per one trade, your TP must be 2-6%. Doesn't it seem too big, or do you trade a couple of times a month?

No Risk, No Reward
UweMoench
Sep 01 2020 at 14:53
462 posts
We can't put stop loss just by percentage. Stop loss should be based on your strategy and where the next support and resistance level is. You also need to consider your take profit and what is the possibility of hitting the take profit.

Redworm
Sep 01 2020 at 18:39
6 posts
In fact, I don't understand traders who don't use stop loss. These are the basics of risk management. It's good that you use it, you have a good strategy. Everyone puts a stop loss for himself, under the parameters of his account, and this is a good approach. Trading is usually unpredictable and you can't always keep track of a deal, without any breaks or something. Sometimes it only takes seconds for the price to drop dramatically, which is difficult to predict. For these and many other cases, you need to put a stop loss)

ElliotCooke
Sep 01 2020 at 18:50
341 posts
Stop-loss is a very important tool for new traders in this market. Because it helps a trader to control their losses.

Shelby10
Sep 02 2020 at 20:20
140 posts
I think SL will help every new traders to deal with the losses.

SofieAndreasen
Sep 13 2020 at 11:33
484 posts
Stop loss is essential to minimize risk. Forex is risky market. So, placing a safety pin in trade is a good trading approach.

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