Advertisement
7 Benefits of using stoplosses
Členem od Jan 06, 2020
69 příspěvků
May 10, 2020 at 04:37
1; It allows you to grow your profits by gradually without everything you earn, e.g. If you make profits if let's say $500 you can risked $50 from it to chase more profits by using stoploss to that effect.
2; It allows you to control and check your drawdown to minimum, personally I hate d rawdowns above 20%, so i avoid it at all cost by planning my trades with stoplosses well placed.
3: It allows you to have a very good money management.
4; With stoplosses well placed, you can always control your emotions of not letting floatings of huge negative openings.
5; You don't have to worry about spikes, as your accounts are protected by it.
6; You can always plan and know how much you stand to loss if things goes opposit, and if you are not kind traders that stays full staring on their trading computers all day.
7: This is my favourite part, Stoploss can actually allow you to risk very little and gain more if only you are a patient trader and always plan well. E.g When you have $1k, You can risk $50 and target to earn $250 and above or Risk $100 and target 500 and above.
Questions are welcomed
2; It allows you to control and check your drawdown to minimum, personally I hate d rawdowns above 20%, so i avoid it at all cost by planning my trades with stoplosses well placed.
3: It allows you to have a very good money management.
4; With stoplosses well placed, you can always control your emotions of not letting floatings of huge negative openings.
5; You don't have to worry about spikes, as your accounts are protected by it.
6; You can always plan and know how much you stand to loss if things goes opposit, and if you are not kind traders that stays full staring on their trading computers all day.
7: This is my favourite part, Stoploss can actually allow you to risk very little and gain more if only you are a patient trader and always plan well. E.g When you have $1k, You can risk $50 and target to earn $250 and above or Risk $100 and target 500 and above.
Questions are welcomed
Market Direction
Členem od Jan 06, 2020
69 příspěvků
May 10, 2020 at 12:45
You can also add yours
Market Direction
Členem od Aug 20, 2019
21 příspěvků
May 10, 2020 at 15:06
It's a great list with benefits. I think it's very well-formed. My friend and I recently talked about using stop loss. He's not using it, and he's been asking about benefits. But I couldn't make so many arguments in it's favor, so we decided to postpone the argument. I can't believe I found this thread on the forum so well in time.
Členem od Jan 06, 2020
69 příspěvků
May 10, 2020 at 17:30
I'm very glad it helps you, trading people's money is not the only way to help, I felt like writing things and rules that made me successful so others could learn from it too, I'm not the selfish type.
Market Direction
Členem od Apr 01, 2020
227 příspěvků
May 11, 2020 at 00:37
There are no global receipts whats better it really depends on the strategy. you should try many possibilities while development. There are situations you must use limit/stop orders and otherss there you have to take market.
Členem od Apr 18, 2020
55 příspěvků
May 11, 2020 at 07:17
I agree with that post. Using a SL is any day better. It does a help a lot while trading.
Členem od Nov 19, 2017
6 příspěvků
May 11, 2020 at 07:31
(Upravené May 11, 2020 at 07:31)
Personally I never trade with stop lose, and not encouraging anyone to follow me, I have my own strategy which works for the past 3 years, what I liked about your post and I agree 100% is the drawdown, I hate seeing my drawdown more than 20%, and one of my accounts I was happy with, its drawdown was below 2% for few months
hicham@
Členem od Dec 18, 2019
24 příspěvků
May 11, 2020 at 08:52
i'd say using a proper stop loss has all these benefits.
on the timeframe you are trading the stop loss much be set at a point that makes your idea invalid.
my idea gets invalidaded ussualy the the previus swing high or low is taken out.
stop losses are the single most important thing any trader should have in his strategy.
i once lost 10% on a signle trade because i was moving my stop loss all the time saying the trade will come to my favour untill i eventually decided i didnt want to loose more luckily for me cause the trade never reversed.
i should also mention that this has happened after i had enormus profits at 1% for a continuous 2 month wich very few loosing trades, i was feeling unbeatable at the time that i caant be wrong
i never again changed my stop loss since then. good placement and if i am wrong then be it, i'll get the next one or the one after that.
but to get back that 10% i lost it took me a while.
for me i no longer accept any drawdown. i can accept my drawdown on balance to be 10-15% by my equity must be at least break even when i have that kind of drawdown,
that draw down happens cause the loosers loose faster than the winners win (if you target 4-5-10r that is)
on the timeframe you are trading the stop loss much be set at a point that makes your idea invalid.
my idea gets invalidaded ussualy the the previus swing high or low is taken out.
stop losses are the single most important thing any trader should have in his strategy.
i once lost 10% on a signle trade because i was moving my stop loss all the time saying the trade will come to my favour untill i eventually decided i didnt want to loose more luckily for me cause the trade never reversed.
i should also mention that this has happened after i had enormus profits at 1% for a continuous 2 month wich very few loosing trades, i was feeling unbeatable at the time that i caant be wrong
i never again changed my stop loss since then. good placement and if i am wrong then be it, i'll get the next one or the one after that.
but to get back that 10% i lost it took me a while.
for me i no longer accept any drawdown. i can accept my drawdown on balance to be 10-15% by my equity must be at least break even when i have that kind of drawdown,
that draw down happens cause the loosers loose faster than the winners win (if you target 4-5-10r that is)
Členem od May 06, 2020
9 příspěvků
May 11, 2020 at 11:10
hi4all posted:
Personally I never trade with stop lose, and not encouraging anyone to follow me, I have my own strategy which works for the past 3 years, what I liked about your post and I agree 100% is the drawdown, I hate seeing my drawdown more than 20%, and one of my accounts I was happy with, its drawdown was below 2% for few months
So do you effectively use a stop loss based on draw down of your account rather than pips?
Členem od Nov 19, 2017
6 příspěvků
May 11, 2020 at 13:20
nikosk0 posted:
i'd say using a proper stop loss has all these benefits.
on the timeframe you are trading the stop loss much be set at a point that makes your idea invalid.
my idea gets invalidaded ussualy the the previus swing high or low is taken out.
stop losses are the single most important thing any trader should have in his strategy.
i once lost 10% on a signle trade because i was moving my stop loss all the time saying the trade will come to my favour untill i eventually decided i didnt want to loose more luckily for me cause the trade never reversed.
i should also mention that this has happened after i had enormus profits at 1% for a continuous 2 month wich very few loosing trades, i was feeling unbeatable at the time that i caant be wrong
i never again changed my stop loss since then. good placement and if i am wrong then be it, i'll get the next one or the one after that.
but to get back that 10% i lost it took me a while.
for me i no longer accept any drawdown. i can accept my drawdown on balance to be 10-15% by my equity must be at least break even when i have that kind of drawdown,
that draw down happens cause the loosers loose faster than the winners win (if you target 4-5-10r that is)
Few years ago I watched a video, if I am not mistaken it was Anton Kreil, about his strategy, let me tell what I Learnt from that conference, SL is a big lie,you should never set a stop loss I am telling you this as you are an experienced one, any beginner i would recommend him or even insist to use a SL, I am using a strategy very close to be hedging, so instead of placing a stop lose i will open a new trade, you may think i am going to blow my account, but iit is working for me, i will try to search on youtune for that video and send it to u here, it 45 min long and very useful
hicham@
Členem od Nov 19, 2017
6 příspěvků
May 11, 2020 at 13:22
wirymace posted:hi4all posted:
Personally I never trade with stop lose, and not encouraging anyone to follow me, I have my own strategy which works for the past 3 years, what I liked about your post and I agree 100% is the drawdown, I hate seeing my drawdown more than 20%, and one of my accounts I was happy with, its drawdown was below 2% for few months
So do you effectively use a stop loss based on draw down of your account rather than pips?
never use a stop loss but open a trade instead, I am using automated trading
hicham@
Členem od Dec 18, 2019
24 příspěvků
May 11, 2020 at 15:02
that's advice for people to loose so the few ones can win. a stop loss invalidates the idea, means you're wrong. on to the next one
i am currently short on NU, if this thing breaks out how much time will it take for it to come back to my entry?
http://prntscr.com/serhdh
I'll tell you
http://prntscr.com/serhno
a decade if i am lucky
i am currently short on NU, if this thing breaks out how much time will it take for it to come back to my entry?
http://prntscr.com/serhdh
I'll tell you
http://prntscr.com/serhno
a decade if i am lucky
Členem od Apr 28, 2020
6 příspěvků
May 11, 2020 at 19:32
hi4all posted:wirymace posted:hi4all posted:
Personally I never trade with stop lose, and not encouraging anyone to follow me, I have my own strategy which works for the past 3 years, what I liked about your post and I agree 100% is the drawdown, I hate seeing my drawdown more than 20%, and one of my accounts I was happy with, its drawdown was below 2% for few months
So do you effectively use a stop loss based on draw down of your account rather than pips?
never use a stop loss but open a trade instead, I am using automated trading
There are stops and stops, loong stops, short stops, mental stops, some amazing automated trade mangers that use stops,
I used stops today below last weeks low, had to be a way a lot from screen, even for demo but decided so much risk is worth and coldly walked away, none stopped out the few hours it took me to realize it is not my day and closed all at once, kind of a stop also, I am bad with traditional set and dont move stops, mainly lock in profit with them, probably something I should Un-learn , automation helps some at least me.
I like what Hicham Nejjahi is doing, I need to do the "always in" manually, newer had the guts to do it
Členem od Jan 06, 2020
69 příspěvků
May 11, 2020 at 22:07
nikosk0 posted:
that's advice for people to loose so the few ones can win. a stop loss invalidates the idea, means you're wrong. on to the next one
i am currently short on NU, if this thing breaks out how much time will it take for it to come back to my entry?
http://prntscr.com/serhdh
I'll tell you
http://prntscr.com/serhno
a decade if i am lucky
What are you saying as I don't get you.
Market Direction
Členem od Dec 18, 2019
24 příspěvků
May 12, 2020 at 06:11
TraderProHungary posted:nikosk0 posted:
that's advice for people to loose so the few ones can win. a stop loss invalidates the idea, means you're wrong. on to the next one
i am currently short on NU, if this thing breaks out how much time will it take for it to come back to my entry?
http://prntscr.com/serhdh
I'll tell you
http://prntscr.com/serhno
a decade if i am lucky
What are you saying as I don't get you.
i was saying that i had a 4hr timeframe short on nzdusd
if that thing would break up there is no way it would return to my entry in less than 10 years. (look at the monthly chart)
so the use of stop loss for me is essential.
Členem od Feb 13, 2020
21 příspěvků
May 13, 2020 at 16:24
You should not consider trading without stop loss. Stop loss is an essential and vital element of successful and healthy trading. I know some people that were arrogant enough to trade without stop loss and I saw regret and wanting to get back in time in their eyes. So please, be smart and use stop loss.
Členem od Mar 03, 2020
18 příspěvků
May 15, 2020 at 16:06
7 benefits? There is just 1 benefit - you won't lose your whole capital! Or it's not enough for you? :)
Členem od Jan 06, 2020
69 příspěvků
May 16, 2020 at 08:16
protrader69120 posted:
7 benefits? There is just 1 benefit - you won't lose your whole capital! Or it's not enough for you? :)
Those are the benefits from my 12 years of trading I singled out.
Market Direction
Členem od May 15, 2020
18 příspěvků
May 18, 2020 at 08:30
protrader69120 posted:
7 benefits? There is just 1 benefit - you won't lose your whole capital! Or it's not enough for you? :)
I agree. That is one enough reason to use SL while trading
Členem od May 18, 2020
9 příspěvků
May 18, 2020 at 12:17
You can still lose all your capital but it will take longer using SL. Trader need money management to better trade
