There are those who never know when they should stop trading because the have their emotion out of check. They therefore want to make more trades and gain more money faster which is a sure way to make a lot of losses in a very short while. If you want to make it then you need to know when to stop. That is very important.
You know that you should stop when all you are doing is making losses. As much as everyone can join forex. It does not mean that anyone should join. If it is not working out for you then you need to know when to quit instead of taking a lot of time trading only for you to fail in the end.
fancydandy posted: I have seen some comments stating that some random stop loss is a way. Never ever do a random stop loss because it is like randomly study a part of topic thinking it will surely coming in the exam while ignoring other, as a result, you get a poor grade. That is like with random SL. Randomly setting SL leads to potential loss. So for me, I always put the SL based on the market conditions and risk management.
Good choice; same from me! I always set my SL & TP according to the position of nearest support & resistant levels;
This can also prove to be a wrong trading strategy these days, i mean take a look at Gold, price takes out any recent swing high or swing low before changing direction again
Wittonlord posted: You know that you should stop when all you are doing is making losses. As much as everyone can join forex. It does not mean that anyone should join. If it is not working out for you then you need to know when to quit instead of taking a lot of time trading only for you to fail in the end.
It took me a while to stop chasing the losses. Now I have a set and forget mentality when executing trades. As long as I plan ahead set AL and TP I have no reason to be constantly eyeballing trades and worrying about making back the losses.
Aim for high probability trades based on your backtesting and forward testing and place the stop accordingly. Ensure the risk taken with this stop is always in line with your stategy (1-2% is normal). If everything is in line with your strategy which I assume turns a profit in theory then you have sufficient win rate and RR that the potential for a 1-2% loss won't impact you long term. Trading without a stop loss however is kamikaze.