Importance of Stop Loss

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

Yeah only newbies and trade without a stop loss. Using a stop loss is trading 101

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.

Moreover, using stop losses depends on the trading system you use. If your trading system without stop losses works, do not start to use stop losses just because the forum says.

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

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.

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 .

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.

Me to. S/R is a better way to set SL. everything else is arbitrary. Let the market define the SL

Well there are more way how to calculate stop loss. one of the popular is ATR

I like the idea of using ATR to get SL and combining it with identifying TP. ATR is an under rated indicator.

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.

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 :)

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.

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.

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.

Some pro traders claim they don't use a stop loss. I find this unbelievable.

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.

Treeny posted:
Some pro traders claim they don't use a stop loss. I find this unbelievable.

LOl 😀 stop loss is very important to success in the currency trading.

How it's possible?