Stop loss is a killer if

Stop loss is a killer if you do not use it properly. You should risk reward ratio of your strategy. In ranging market it seems price comes back again. But if the market trend for long and if you against the trend you will eventually get the margin call.

Context is an important part of the Forex market. It is very difficult to make a profit from trading if you have no idea about the market context. Whether the market is in trendy momentum or volatile momentum can be understood by market context. Protects stop-loss trading. Risk cannot be maintained without stop loss.

You are absolutely right, no profitable trading will work if you do not understand what it is.

Yes, you are right. If you don't use the stop loss properly, you can face a big loss.

Like everything else in trading, you got to understand where to place stop loss.

barbarawright posted:
Like everything else in trading, you got to understand where to place stop loss.

Support and resistance level are the main aspect of stop loss. So, learn about those two first.

Of course, you're right, if you don't know what you're doing then I don't know how to make a profit.

Yes I agree with you. Many traders put stop loss by counting pips. But that's not a good idea to place stop loss. To place stop loss we need to good knowledge about support and resistance.

Correct and reasonable application of it is really the result that you expect and will help to avoid many risks.

The use of stop losses is highly dependent on the method of market analysis and trading. The stop loss level can be determined using technical analysis methods (levels, patterns, etc), as well as the maximum risk that the trader is able to accept in case of loss. Stop loss is not a killer if market conditions have been analyzed correctly.

Loss is an inevitable part of trading there is nobody who can avoid it completely; mostly loss occurs due to lack of exact money management plan as well non-skill trading knowledge. So, for avoiding loss we have to focus on there.

I think the stop is utterly useless because for me I am a day trader with a very short trading span. A borderline scalper if you say so because stop loss will make you secure but ruin your profits. It is the basics of the market that risk is involved.

Darrensmith posted:
I think the stop is utterly useless because for me I am a day trader with a very short trading span. A borderline scalper if you say so because stop loss will make you secure but ruin your profits. It is the basics of the market that risk is involved.

Many traders have survived market crashes and wrong decisions through stop loss. People generally tend to look at the negative sides first rather than the positive ones. If you think sl has endless possibility to ruin profits then you can lower the stop loss percentage. For example through my broker Fxview I have made the stop loss only 5 percent of the original price; it is simple. When I was holding a forex pair on a particular day the value of the base currency fell tremendously. The stop loss saved me from losing literally all of my capital because it traded the currency at just 5 percent of the negative value. Same percentage of sl now I follow across all my trading accounts which include fxtm as well.

Stop loss is a safety net or a backstop so to say, it should be put far enough for preventing a catstrophic event, such as the black swan of unpegging of the EURO and the CHF. Otherwise, everything should be implemented programmably or by constant monitoring of the trade.

In short - SL is a must but you must know how to use it properly.

That is right. But in the right situation, it can actually save a trader from any higher loss. Quite an effective tool, I’d say.

lanayates posted:
That is right. But in the right situation, it can actually save a trader from any higher loss. Quite an effective tool, I’d say.

It is the most useful tool in trading. Never trade without setting SL.

That is right and I always advise my friends to be very careful with using stop loss. They should first learn it properly and then make use of it on their trading system. Wrong placement of sl can be very inimical to high profits.

since I stopped putting a stop loss my trading and mentality have been going up ....it could be place as an emergency measure way far from your trade but its not usually what gets me out of a trade ... market behavior and price action does