Placing stop loss

garrettlamb posted:
Yes, placing stop loss can be tricky but if you get an idea about its proper placement, you can save your trades.

even when running an EA?

Some pairs are more stable than others ,thats why its wise to trade 1 pair to begin with ,usually what we do is wait for large spikes placing stop loss instantly as spike happens,must be a larger spike than rest of the trend.Next 3 candles present themselves of possible direction,takes practice of reading the trend to place correct stops.

garrettlamb posted:
Yes, placing stop loss can be tricky but if you get an idea about its proper placement, you can save your trades.

True. It is a good risk management tool. Every trader must use it.

I will never understand traders who do not understand the importance of placing stop loss for their order. I can see why experienced traders sometimes do not do that, but beginner should seriously input their trading style and learn why stop loss is very important.

The use of stop loss in trading is a prerequisite. Most of the accounts were lost because the trader was too lazy to place a stop loss.

Fridrike43fr posted:
The use of stop loss in trading is a prerequisite. Most of the accounts were lost because the trader was too lazy to place a stop loss.

Yes, exactly. If a trader makes an effort to study the market and decide the stop loss level, most of the trades can prevented from blowing up the accounts.

ele020 posted:

Fridrike43fr posted:
The use of stop loss in trading is a prerequisite. Most of the accounts were lost because the trader was too lazy to place a stop loss.

Yes, exactly. If a trader makes an effort to study the market and decide the stop loss level, most of the trades can prevented from blowing up the accounts.

Traders also need to place it in proper place. Otherwise, it may lead you to loss.

Stop loss is important for short term traders. But the real problem is where to place the stop loss. Many people place stop loss by counting pips. But to place stop loss, knowledge of support and resistance is very important.

it is indeed a very very imp feature. stop loss can save u going in big losses

Gracewilson1995 posted:
Yes it is bit difficult to know where to place but it shud be done where the person thinks she/he can not lose more than this.

Yes to know exactly where to place a stop loss a person should have knowledge of support and resistance level.

Akasuki posted:
Stop loss is important for short term traders. But the real problem is where to place the stop loss. Many people place stop loss by counting pips. But to place stop loss, knowledge of support and resistance is very important.

There is an argument in your comment. However, it cannot be denied that stop loss is very important to manage the risk.

Losses occur and so do wins. The goal is relative indifference to both.

If you use one it has to be strategically placed

Every trade that you make has to have

A defined entry,in my case i average in.

A defined exit.

and a stop, ( this stop is your learning curve) because the way i trade there is probably a secondary trade, But.

But in three words.

Maybe how to place stop loss each trader has own way, some trader may prefer to use the risk-reward ratio to determine how much stop loss will be placed on every single trades, but some another trader maybe giving place wider stop loss than profit target with reason-giving more move room of the price so will often hit target profit, and experience will giving us the lesson and take what the best will be taken.

Stop loss is important if you are short term trader and can't sit before the screen all the time. Without stop loss you could get margin call if market makes a huge move.

Placing stop loss is very important. Most traders don't utilize stop loss. They generally stay in a dread of losing trade. Then again taught traders have a methodology and a course of action. That proposes utilizing a stop-loss and a take-profit. When you trade along these lines you are not assessing or betting and you comprehend what the conceivable result can be before you take the trade.

Stop loss is important and it’s part of risk management, so traders can minimise risks and maximise their profits. There is no fixed stop loss. Every trader should risk capital as per their risk tolerance. If you’re a new trader, then you should take less risk per trade.

Traders should place stop loss strategically to minimize their losses and protect their profits. Stop Loss is a critical trading tool as it helps traders avoid losing all their investments in a single trade.