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7 Benefits of using stoplosses
Mitglied seit Jan 06, 2020
69 Posts
May 20, 2020 at 19:21
Using stoplosses have made me a very good and profiting trader as it's revolve and made up my money management.
Market Direction
Mitglied seit Jan 06, 2020
69 Posts
May 22, 2020 at 15:27
Kazile posted:
We can say for sure that there are definitely advantages in using stop loss.
It's the best tool for Good Money Management.
Market Direction
Jul 14, 2020 at 00:22
Stop-loss is useful tool for almost all currency trading strategies as it can be attached to both long and short trade positions. No matter how closely one might try to monitor the market, it is impossible to accurately predict Forex market movements.
Mitglied seit Feb 22, 2011
4573 Posts
Jul 14, 2020 at 07:09
TraderProHungary posted:
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
Well everything you have described would lead only to one outcome,
trades would be closed prematurelly as loss on stop loss
if you let them grow instead they could become profitable on long run.
As you don't have any account and I have many my opinion is based on real experience, while yours is just an theory.
Mitglied seit Jan 11, 2019
140 Posts
Jul 14, 2020 at 11:32
Stop Loss advantages
Offers protection from excessive losses
Enables better control of your account
Helps monitor multiple deals
Executed automatically, at any time
Easy to implement
Allows you to decide what amount you are willing to risk
Offers protection from excessive losses
Enables better control of your account
Helps monitor multiple deals
Executed automatically, at any time
Easy to implement
Allows you to decide what amount you are willing to risk
Mitglied seit Feb 22, 2011
4573 Posts
Jul 14, 2020 at 11:42
Gracewilson1995 posted:
Stop Loss advantages
Offers protection from excessive losses
Enables better control of your account
Helps monitor multiple deals
Executed automatically, at any time
Easy to implement
Allows you to decide what amount you are willing to risk
That ...Executed automatically, at any time... is actually not true
When Swiss bank removed the peg SL were simply not executed by broker as they lack liquidity
Jul 14, 2020 at 17:49
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
only 20% DD? god christ i must be some level of reckless.
Mitglied seit Jul 23, 2020
816 Posts
Aug 24, 2020 at 21:24
TraderProHungary posted:
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
Thanks. That’s a helpful post. I prefer to use trailing stop loss which help me to reduce loss significantly.
Mitglied seit Feb 22, 2011
4573 Posts
Aug 25, 2020 at 13:22
Actually do not confuse stop loss with stopping a loss.
SL is actually loss. It close trade at defined level and decrease your balance and restore your equity.
Yeah it is necesarry to do sometimes. But be carefull usng too much of stop losses will bring you gues what?
Too much loss on your account.
SL is actually loss. It close trade at defined level and decrease your balance and restore your equity.
Yeah it is necesarry to do sometimes. But be carefull usng too much of stop losses will bring you gues what?
Too much loss on your account.
Mitglied seit Apr 06, 2018
242 Posts
Aug 25, 2020 at 15:25
Stoploss is must but where to put stoploss depend upon type of strategy.
1.For trend following strategy small Stoploss should be used.
2.For countertrend strategy large Stoploss should be used as a protective stop in such a way that trading position survives say 95% of time.
1.For trend following strategy small Stoploss should be used.
2.For countertrend strategy large Stoploss should be used as a protective stop in such a way that trading position survives say 95% of time.
The market will trade through it’s path of least resistance .
Aug 29, 2020 at 05:13
Yes you are right. For short term traders stop loss is very important. It helps a trader to reduce his risk. But it needs good experience to place a well calculated stop loss. Otherwise you will hit stop loss if you don't know how to where to place a stop loss.
Mitglied seit Jul 23, 2020
696 Posts
Sep 03, 2020 at 14:43
TraderProHungary posted:
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
Yeah, stop loss is important for good money and risk management. However, I prefer trailing stop loss. It reduces my loss significantly.
Sep 04, 2020 at 00:56
There are many types of stop-loss benefits. Many traders who do not use stop loss face unexpected losses for this reason. Those who use stop-loss are usually within the discipline. Money management and risk management cannot be followed without using a stop loss. If a trader wants to be successful in trading, he must use stop loss.
Oct 07, 2020 at 07:41
LongVision posted:
Stoploss is must but where to put stoploss depend upon type of strategy.
1.For trend following strategy small Stoploss should be used.
2.For countertrend strategy large Stoploss should be used as a protective stop in such a way that trading position survives say 95% of time.
I think that is the opposite
Follow the momentum
Mitglied seit Jul 20, 2020
278 Posts
Oct 07, 2020 at 19:16
Stop loss is very useful for new traders. But to use stop-loss ou need to have proper knowledge about this.
