7 Benefits of using stoplosses

Stop loss protects a trader against sudden losses and so it’s obligatory for a trader to use them. SL and TP using is very important for a Forex trader. But traders can verbalize it hardly and leave using them due to their negligence. So, traders should make it their habit.

without using stop loss your trading condition as like a ship in an deep ocean without any rudder. so it is an inevitable part of trading .

Most of the traders are allergic to using stop losses and its’ because they can’t feel the importance of using stop loss. Using stop loss works as a shield against losses as you know Forex market is too volatile in nature and anything can happen anytime. So here, stop loss works as a security against sudden losses.

Which trader respects the rules of money management surely they use the stop loss trading tool in their trading! I am a day trader & I open enough number of trades in a month! So I can rely on any specific trade position, & this is why I need to use the SL in my live account!

Stop loss is the #1 most important part of any trading plan

menorah111 posted:
Stop loss is the #1 most important part of any trading plan

It really is not only does it protect you against losing your account but it keeps the proabilities in check as well for your wins. Its integral in any good trading plan imo

Stop-loss is one feature in forex trading to protect from bigger losses when the trend is against the order position, maybe not all traders use stop loss depending on the trading strategy that is implemented, but stops loss is good to manage the risk-based plan trading, traders can learn mistake and try more opportunities with use stop loss

Stop-loss is a good risk management technique as it manages the risk by limiting your losses. It can also help protect traders' accounts from losing all of their capital.

Use of stop loss has a cardinal benefit that it protects you from losses. Forex is a highly uncertain market where frequent volatility can destroy anyone’s balance within the blink of an eye. Whether you are a scalper or long time traders, it’s much better for you to use stop loss in any situation.

Stop loss helps you to cut your losses and insures you against big losses in the market.

I believe the most advantage is the I can earn my loss back easily because I only need 7 pips winner to get one loss back or 14 pips winner to earn twice of my loss on a 7 pips Stopped out.

You know I was taught to set a stop loss by many 'pro' traders on courses.

But over the years and with thousands and thousands of hours of testing I've discovered that a stop loss is actually a pretty poor way to exit trades for many reasons.

Exiting on indicators is a far more effective way and clearer signal to exit a position than an arbitrary point on the chart defined by a stop loss.

That's my experience anyway.

Very well written! There are a lot of benefits to them, and I'm glad someone is talking about them.

Nicely pointed out. Stop loss is indeed very important for successful trading. Stop loss helps in the protection of your money from losses.

thats very important

Briosody posted:
A stop loss is a lifejacket. They not only prevent you from losing trades, but help you cultivate good risk management strategies, which are an important part of being a trader. All traders, especially new ones, should use stop losses to minimise their losses and maximise profits. .

I couldn’t agree more. Stop-loss prevents unnecessary losses. And if the right money management strategy is used along with stop loss it can also help in maximising the profits.

Zootaxy posted:
1. It enables you to effectively manage your finances.
2. There are no spikes to be concerned about.
3. It enables you to increase your profit.
4. Allows you to keep track of and regulate your drawdown.
5. It allows you to plan ahead and estimate how much money you'll lose.
6. It allows you to take fewer risks while gaining more.
7. It gives you the ability to manage your emotions.

Thanks for this info. Well said mate.

I can share some of the advantages that have helped me personally. First, I am able to control and make good profits. I can develop appropriate strategies.

Maximum traders trade haphazardly without following any risk management and money management policy and it’s not a good thing for trading they should know.