Trading without stop loss

Gleywilleyy posted:
I think under no circumstances should stop loss not be used, it really is not worth the risk. I have suffered massively in the past when I was too casual and paid the price in terms of losing all my profits. I have made a fresh start with IB and fxview and vowed to never not use sl.

The problem here is it's based from your own experience and it may not be the same with others. Though I understand the importance of SL. As I've mentioned before it would depend on the strategy you use and how focused you are when trading. I do have an account with a stop by overall % of drawdown on all trades but not on a per trade basis. But I have another account where I use SL on all trades. It really based from your backtest, research, and forward testing. It's also a personal preference I guess.

Trading without stop loss is okay if you are going to stick to your trading screen through out your positions are open. If you are planning to leave your trades unattended, use of stop loss is must.

Gleywilleyy posted:
I think under no circumstances should stop loss not be used, it really is not worth the risk. I have suffered massively in the past when I was too casual and paid the price in terms of losing all my profits. I have made a fresh start with IB and fxview and vowed to never not use sl.

If someone is constantly monitoring their trades then it’s okay to not make use of sl. As it is there is always the problem of slippage, on top of it if sl is used (which certainly takes its own time to get triggered), trading profitably is just not possible.

Guys just check if your broker allows use of trailing stops, they are much better as they move with change in prices. I know for sure that IG, Fxview and XTB give this option.

russellgutierrez posted:
Guys just check if your broker allows use of trailing stops, they are much better as they move with change in prices. I know for sure that IG, Fxview and XTB give this option.

Is it not an option will all brokers that offers Metatrader? I've never seen a broker that offers MT and no TSL.

Hedging can be a very good risk management strategy that some people like to use for their trades. Making effective use of the stop loss can also be helpful in minimising risk.

Whether we use SL while trading or not, I think that totally depends on a trader's strategy and plan. It is not necessary to have a stop loss placed every time you are trading, but yes it serves as an extra cushion against major losses for sure.

Yes, it does work for some traders but for others, making use of a stop loss can be a life saviour.

freckcope posted:
Yes, it does work for some traders but for others, making use of a stop loss can be a life saviour.

True. Stop loss save us from uncertain situation in trading.

Placing stop loss is an art. It's not that much easy as some people think. If your broker widen the spreads every now and then, change the broker. Other than that broker has nothing to do with your stop loss. Many times I have survived just by one or two pips. Find good broker. Stop blaming. Learn then trade.

Stoploss is one feature to manage the risk in trading, a trader can measure the limit risk in every plan trading according to their preference, how to place stop loss also depending with each trader, there are a trader can use 100 pips stop loss and there are trader that uses tight stop loss, some trader use risk-reward ratio to manage profit and loss adjusted to their trading strategy.

Adjust SL as per your risk appetite. I always keep my SL to 5 ticks. This can vary from trader to trader.

5 ticks. that is a tiny SL. Surely you get stopped out all the time. The spread is around 1 pip

blackChelsea posted:
Adjust SL as per your risk appetite. I always keep my SL to 5 ticks. This can vary from trader to trader.

It is very important to have discipline in everything. Through discipline the trader can achieve success.

Trading without a stop loss is the same as trading without a plan. Stop losses prevent traders from blowing up their accounts.

You should always trade with a plan: how much I can bear to lose, and how much I wish to lose. So, in future, you have money to trade and grow. There are some traders who trade without SL, but they have more knowledge too.

The_unforgiven posted:
5 ticks. that is a tiny SL. Surely you get stopped out all the time. The spread is around 1 pip

SL not meant to hit always mate, SL is for safety not to make more loss.

The main advantage of applying stop loss in your trading is that you will protect yourself from giving back all your profits in just one or two weeks. You can also prevent a deep drawdown which will bring you to the margin call level, and even to the liquidation of your account.

New traders always should use stop loss but the problem with stop loss is most don't know where to place SL. That's why it's important for any trader to learn how to place an SL.

Yes, stop loss is not meant to always hit. Stop Loss is a tool that helps you to avoid losing money. It will save you from all those moments when you have an open position, and suddenly it starts moving against you.