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Importance of Stop Loss
Mitglied seit Oct 04, 2018
9 Posts
Nov 08, 2018 at 07:16
Better to be closed at the stop loss than close 100 pips lower down with a bigger loss!!! Stop loss are critical for risk management
Mitglied seit Oct 09, 2018
41 Posts
Nov 08, 2018 at 13:22
not many traders use stop loss, but i recommend for the newbie's. i am out of the newbie phase and i still do use stop loss.
Mitglied seit Oct 25, 2018
8 Posts
Nov 12, 2018 at 15:09
There are no trading system that work that don't use stop loss. FACT. If you use no stop loss then you could always lose all your profit in one trade. That is no strategy to use
Mitglied seit Feb 22, 2011
4573 Posts
Nov 14, 2018 at 14:51
There are different kind of SL
Used wisely it can save your account. Otherwise you can suffer unnecessary loss or big loss.
1. SL per position - most common understanding os SL. Where each trade has SL defined in pips. Often result in closing position prematurely when in loss before it become profitable.
2. SL per equity. I prefer this one. You define level - e.g. 10% at which all your positions get closed and trading is halted.
3. Leverage. I often hear that low leverage serves as stop loss. Well it is side effect no primary purpose.
Used wisely it can save your account. Otherwise you can suffer unnecessary loss or big loss.
1. SL per position - most common understanding os SL. Where each trade has SL defined in pips. Often result in closing position prematurely when in loss before it become profitable.
2. SL per equity. I prefer this one. You define level - e.g. 10% at which all your positions get closed and trading is halted.
3. Leverage. I often hear that low leverage serves as stop loss. Well it is side effect no primary purpose.
Nov 15, 2018 at 07:17
in Fx Failure rate doesn’t matter. Matter is why traders have been failing. According to me, beginners trader fail after passing sometimes in live account because they have no trading discipline and always trade with emotions as well try to take revenge after having a loss. And some experience traders lose due to their overconfident. Practically there is nothing 100% in Forex .
Nov 15, 2018 at 07:39
togr posted:
There are different kind of SL
Used wisely it can save your account. Otherwise you can suffer unnecessary loss or big loss.
1. SL per position - most common understanding os SL. Where each trade has SL defined in pips. Often result in closing position prematurely when in loss before it become profitable.
2. SL per equity. I prefer this one. You define level - e.g. 10% at which all your positions get closed and trading is halted.
3. Leverage. I often hear that low leverage serves as stop loss. Well it is side effect no primary purpose.
Well said! By the way, I always set my SL acceding to the position of support/resistant levels! I don’t take this decision based on my own choice.
Mitglied seit Feb 22, 2011
4573 Posts
Nov 15, 2018 at 14:36
Well there are more way how to calculate stop loss. one of the popular is ATR
Mitglied seit Oct 29, 2018
10 Posts
Nov 19, 2018 at 11:18
I like the idea of using ATR to get SL and combining it with identifying TP. ATR is an under rated indicator.
Mitglied seit Feb 22, 2011
4573 Posts
Nov 20, 2018 at 09:01
AmDiab posted:Astronautica posted:
I like the idea of using ATR to get SL and combining it with identifying TP. ATR is an under rated indicator.
Default settings of ATR? Or do you have any personal choice! Thanks in advance.
I have specifics setting, it can be used to calculate sl as well as tp.
100 sl one day is completely different than 100 sl other day.
100 pips movement can take 5 secs, min, hours :)
Nov 27, 2018 at 08:11
togr posted:AmDiab posted:Astronautica posted:
I like the idea of using ATR to get SL and combining it with identifying TP. ATR is an under rated indicator.
Default settings of ATR? Or do you have any personal choice! Thanks in advance.
I have specifics setting, it can be used to calculate sl as well as tp.
100 sl one day is completely different than 100 sl other day.
100 pips movement can take 5 secs, min, hours :)
I always set my SL based on intraday support and resistant level; if my trade setup is very far from intraday support/resistant level; then I avoid this trade opportunity.
Feb 20, 2019 at 07:10
Reasons why most traders lose in my opinion is emotional making decision. You have to follow a trading plan or system with discipline, otherwise you aren’t allowing your edge to work for you. Without this then any form of trading in this regard is simply gambling. Since it can’t be reproduced reliability.
Feb 24, 2019 at 13:20
i will never trade without one again, i got stupid with my trading last year and thought i could manage a trade without one, quickly found out i couldn't, the mental game was insane i just couldn't bring myself to pull the plug on a loosing trade! ended up loosing the majority of my account.
Mitglied seit Jan 05, 2016
1097 Posts
Feb 24, 2019 at 21:55
Treeny posted:
Some pro traders claim they don't use a stop loss. I find this unbelievable.
It depends on what the strategy is actually. I say this, because there are some strategies where a trade stays open regardless of the loss or profit.
For example, if a trader opens multiple trades for EUR/USD, they might just hold the bad trades until the aggregate value of the trade basket indicates a profitability, and then close out the entire position of EUR/USD or whatever they happen to be trading.
In general however, real pro traders know the importance of money management, and the value of using a reasonable SL.
If it looks too good to be true, it's probably a scam! Let the buyer beware.
Mitglied seit Dec 18, 2018
43 Posts
Feb 25, 2019 at 07:15
Treeny posted:LOl 😀 stop loss is very important to success in the currency trading.
Some pro traders claim they don't use a stop loss. I find this unbelievable.
How it's possible?
Mitglied seit Aug 27, 2017
875 Posts
Feb 25, 2019 at 07:21
Professional4X posted:Treeny posted:
Some pro traders claim they don't use a stop loss. I find this unbelievable.
It depends on what the strategy is actually. I say this, because there are some strategies where a trade stays open regardless of the loss or profit.
For example, if a trader opens multiple trades for EUR/USD, they might just hold the bad trades until the aggregate value of the trade basket indicates a profitability, and then close out the entire position of EUR/USD or whatever they happen to be trading.
In general however, real pro traders know the importance of money management, and the value of using a reasonable SL.
You are right; and it’s not common scenario actually; as I see maximum pro traders are interested on SL since, they know the value of if.
keeping patience.......
