Just place a stop and secure your profits, i use stop losses on volatile pairs or use a very small lot size if i dont want to place stops, both of this helps me to keep making profits and i can exit trades without letting it get to my stoploses first if i see a reversal. Just be deciplined about it and you will keep making profits.
For short term traders, stop loss is very important. In short term market can move in both ways even if it's in trend. To save your capital from unwanted loss, stop loss is important. But you need good understanding of the market to place a good stop loss.
Using trailing stop is a good trading plan when the strong trending market, usually I like to manual stop loss and modify when needed, looking at the level price that formed support and resistance zone to placed stop loss.
i read that a lot of pro traders with big firms dont use stop losses. some reasons are if they think direction is right; give the trade time;second they will use hedging trade until direction goes their way again.then close hedging trade.only after a certain time will they close a trade if their reasons are good.why should you close a trade if you think direction is right.? how many times do people do this and see their their trade reverse after stop loss.also the percentage profit per year is usuall 20% to %100 usually.this is not hard if you have big trading reserves .stop loss does not equal direction is wrong; weekly and monthly chart will confirm the direction. most times.price most times retraces before going in a direction across all markets.
Really don't about big firms are suing that but as a retail forex trader, it is always better to exit the position with small loss other wise have to go home with the big sack of loss. Moreover if trade returns to the better position you can enter there as well. its all about timing and managing the risk.
Retail trader they only follow the market to making a profit, trading against the market is a disaster, but in fact not always trader having precisely prediction all the time, when getting in wrong direction stop loss or cut loss is one way to manage the risk, as trader retail only trying to manage the risk but they cant control the risk, its why important stop loss for them
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.