Stop Loss Importance

Newcomers don’t like to use Stop Loss which is the inevitable part of trading; they have to ensure more about proper using Stop loss. And they should practice demo account for all time besides live account. And forum community can be a great source for them to acquire real trading experience in particularly Fx factory and FPa.

Stop Los must still be able to use. as a tool that will help not lose your account.

Before, I also did not use stop loss, I wanted to earn more. And as a result, loss of account.

Once, one of my trader friends said such a thing. The more often you place a stop loss, the more often it will trigger. Sl psychologically tunes you to a negative order.
Therefore I prefer not to set it at all.

andrew_2 posted:
Once, one of my trader friends said such a thing. The more often you place a stop loss, the more often it will trigger. Sl psychologically tunes you to a negative order.
Therefore I prefer not to set it at all.

It depends if u like to loss all of your hard earned money. You can go with no loss strategy.

I don't mean discredit other's opinions but here is my take about stop loss.

If your trade lots are 'properly sized', you may never need a stop loss.

To avoid a debate because systems are different per trader, here's a thought experiment which some of you may relate to. How many of your trades have been 'supposedly right' only had it not been 'stopped'? Another one is, how many times have your accounts 'should have been blown' but saved by 'stop loss'?

If you quantify this correctly in terms of profits, then you will know objectively whether your system needs a stop loss or not.

andrew_2 posted:
Once, one of my trader friends said such a thing. The more often you place a stop loss, the more often it will trigger. Sl psychologically tunes you to a negative order.
Therefore I prefer not to set it at all.

Agreed.

I don't use stops for smaller deposits and I'm doing fine

i only use stop loss when trading during news. it cut more losses really . love this trading approach.

Why is this still a question that people ask!!! Stop loss is essential. No pro trader in their right mind would trade without a stop loss.

trading without stoploss is like crossing road in a headphones and with closed eyes.
You can get luck and not get hit.
But you also can get really UNLUCKY. that way you will lose everything.
trade safe!

This needs to be clear. When you don't set your SL, you still have one. The 50% margin level. So we all have one, whether consciously or not. The problem traders face is due to the leverage they use. Stop gambling and open an account with no more than 50:1 and even that is very high. The less leverage you use, the more pips the market gives you. Obviously you have to have a good system. But leverage is the only reason why traders blow up. Stop being like most traders.

I think that's a good way to curtail losses. I try using SL the maximum times possible while trading.

Brick_56 posted:
I think that's a good way to curtail losses. I try using SL the maximum times possible while trading.

Absolutely. Best way to reduces the probability of losses.

spanishtrader799 posted:
trading without stoploss is like crossing road in a headphones and with closed eyes.
You can get luck and not get hit.
But you also can get really UNLUCKY. that way you will lose everything.
trade safe!

I do not understand. Surely if you use a 50 pips stop loss on 1:500 leverage account or a 1:10 leverage, your losses will still be the same for the same Lot size

villaintrader posted:
This needs to be clear. When you don't set your SL, you still have one. The 50% margin level. So we all have one, whether consciously or not. The problem traders face is due to the leverage they use. Stop gambling and open an account with no more than 50:1 and even that is very high. The less leverage you use, the more pips the market gives you. Obviously you have to have a good system. But leverage is the only reason why traders blow up. Stop being like most traders.

A very good point. If traders understand this, they will not even ask about 'stop loss'.

In short, stop loss is a good opportunity to get away from big losses.

certainly this is one of the most important tools for any trader

I believe I wrote the benefits of stoploss and some people still chose to ignore it https://www.myfxbook.com/community/general/7-benefits-using-stoplosses/2197277,1 This has been my greatest protection tool in saving my profits which made me successfully become a professional.