Stop Loss

AmDiab posted:

frankmartin1 posted:
A stop loss is very important for fund security. A stop-loss order is developed to reduce a trader's loss on a position in a security. A stop-loss order eliminates emotions that can impact trading decisions.

No doubt on the value of SL; but we traders need to set the SL according to the market’s situations instead of our own choice! That’s the Moto of SL.

My motto of SL is to use both favorable expectation (market's situation and affordable loss), otherwise don't trade in that time to avoid greed. critical one

I use stop loss as a percentage of the ATR. If For daily I use 100%, 4 hourly I use 50% and 1 hourly 25%

The ATR is the best indicator to use for SL and TP and the only one to use for trading forex[ SL 1.5 x ATR for all timeframes] hope this of help!

Stop loss is an amazing order type that helps you to safeguard yourself against potential losses from trade. It lets the buyer buy or sell a stock automatically, once a particular set price is achieved. It is a way to limit the trader’s losses. For instance, if you have applied a stop loss at about 15% below the buying price, then your loss is limited to 15%. you cannot incur a loss more than 15%.

Setting up a stop loss while trading has both advantages and disadvantages.

ADVANTAGES
    • you don't have to keep a constant watch on your stock’s position.
    • You are safeguarded against big losses by setting a stop loss.

DISADVANTAGES
    • this type of order cannot be placed on all types of securities.
    • If the stop loss is set at a price too close to the current price, the deal may get triggered and an unnecessary sale may take place.

lavis_book posted:
Stop loss is an amazing order type that helps you to safeguard yourself against potential losses from trade. It lets the buyer buy or sell a stock automatically, once a particular set price is achieved. It is a way to limit the trader’s losses. For instance, if you have applied a stop loss at about 15% below the buying price, then your loss is limited to 15%. you cannot incur a loss more than 15%.

Setting up a stop loss while trading has both advantages and disadvantages.

ADVANTAGES
    • you don't have to keep a constant watch on your stock’s position.
    • You are safeguarded against big losses by setting a stop loss.

DISADVANTAGES
    • this type of order cannot be placed on all types of securities.
    • If the stop loss is set at a price too close to the current price, the deal may get triggered and an unnecessary sale may take place.

Stop loss is not order type. Order types are buy/sell stop/limit.
SL is parameter of such order. It is not mandatory and there are also other ways to close trades.

SL is not only helpfull but is is also dangerous as it can close trade in loss ofter causing actual loss to your account.
Determining the proper SL is one of the most important part of trading plan.

togr posted:

lavis_book posted:
Stop loss is an amazing order type that helps you to safeguard yourself against potential losses from trade. It lets the buyer buy or sell a stock automatically, once a particular set price is achieved. It is a way to limit the trader’s losses. For instance, if you have applied a stop loss at about 15% below the buying price, then your loss is limited to 15%. you cannot incur a loss more than 15%.

Setting up a stop loss while trading has both advantages and disadvantages.

ADVANTAGES
    • you don't have to keep a constant watch on your stock’s position.
    • You are safeguarded against big losses by setting a stop loss.

DISADVANTAGES
    • this type of order cannot be placed on all types of securities.
    • If the stop loss is set at a price too close to the current price, the deal may get triggered and an unnecessary sale may take place.

Stop loss is not order type. Order types are buy/sell stop/limit.
SL is parameter of such order. It is not mandatory and there are also other ways to close trades.

SL is not only helpfull but is is also dangerous as it can close trade in loss ofter causing actual loss to your account.
Determining the proper SL is one of the most important part of trading plan.

Basically, traders need to use the SL & TP according to the market situation! Having a fixed target on SL would be more dangerous!

The Stop Loss is a great tool that I personally use in my operations but you can’t ask what is the exact amount you need to set, it all depends on how much loss you are willing to assume in a particular operation by guiding you by your statement of account and the volume you want to establish in the movement.

AniLorak posted:

togr posted:

lavis_book posted:
Stop loss is an amazing order type that helps you to safeguard yourself against potential losses from trade. It lets the buyer buy or sell a stock automatically, once a particular set price is achieved. It is a way to limit the trader’s losses. For instance, if you have applied a stop loss at about 15% below the buying price, then your loss is limited to 15%. you cannot incur a loss more than 15%.

Setting up a stop loss while trading has both advantages and disadvantages.

ADVANTAGES
    • you don't have to keep a constant watch on your stock’s position.
    • You are safeguarded against big losses by setting a stop loss.

DISADVANTAGES
    • this type of order cannot be placed on all types of securities.
    • If the stop loss is set at a price too close to the current price, the deal may get triggered and an unnecessary sale may take place.

Stop loss is not order type. Order types are buy/sell stop/limit.
SL is parameter of such order. It is not mandatory and there are also other ways to close trades.

SL is not only helpfull but is is also dangerous as it can close trade in loss ofter causing actual loss to your account.
Determining the proper SL is one of the most important part of trading plan.

Basically, traders need to use the SL & TP according to the market situation! Having a fixed target on SL would be more dangerous!

SL is like meregncy exit.
The thing is when you are too carefull and submitting too tight SL, it will be hit often and thus resulting in loss of capital

I don't use stop loss. I close trade only when I get a chart pattern in opposite direction to that of which I am in. This means that I am always in the market when I close a long trade I open a short trade

We loss for many reasons , one of the most common reason is immature trading plan or target , this approach always make us emotional and greedy , as a result we trade here at random and become loser . we it is more appropriate to make trading plan according to practical situations.

BBBLack posted:
I don't use stop loss. I close trade only when I get a chart pattern in opposite direction to that of which I am in. This means that I am always in the market when I close a long trade I open a short trade

And how will you handle a massive negative spike against the account? Think about what happened with CHF a few years ago. Without some sort of SL your account would be wiped out. Even if it isn't a massive 3000 PIP price move, can your account easily absorb a sudden 500 pip price move against it? And if so, why would you want that to happen? How close to a margin call would you get? Think about it... trading without any SL to protect your account is irresponsible.

only we can learn when making a loss , and in demo this experience not possible , so i always prefer live trading for acquiring real trading knowledge.

Imamul posted:
only we can learn when making a loss , and in demo this experience not possible , so i always prefer live trading for acquiring real trading knowledge.

Making a loss is good for brokers and other market participants who make profit out of that loss and not for the trader.

If someone is successful in demo with a really working strategy, then there should not be any question why he is not successful in live account.

Success in demo and failure in live commonly indicates random trading or emotion based trading.

Q_FxTrader posted:

Imamul posted:
only we can learn when making a loss , and in demo this experience not possible , so i always prefer live trading for acquiring real trading knowledge.

Making a loss is good for brokers and other market participants who make profit out of that loss and not for the trader.

If someone is successful in demo with a really working strategy, then there should not be any question why he is not successful in live account.

Success in demo and failure in live commonly indicates random trading or emotion based trading.

Yes; emotion plays an important role! In addition; this is why new traders need to use small demo account like 100 to 200$!

In Fx trading, learning is not easy despite of having too many sources including pips school, learning sometimes boning and usually new traders get tempts to start trading without enough knowledge and become fascinated with the way of trading live which may cause laziness and trapped by wishful thinking get rich quickly scheme

Imamul posted:
In Fx trading, learning is not easy despite of having too many sources including pips school, learning sometimes boning and usually new traders get tempts to start trading without enough knowledge and become fascinated with the way of trading live which may cause laziness and trapped by wishful thinking get rich quickly scheme

That’s the reality; there is no Forex trainer as like others profession; this is why it’s always challenging as well as boring!

Well even I set my SL that ways, what’s wrong in that? Having a fixed SL, I don’t think is that preferable.

jakes90 posted:
Well even I set my SL that ways, what’s wrong in that? Having a fixed SL, I don’t think is that preferable.

What’s the way of setting your SL in trading? You mentioned earlier?

its the main challenge when having a losses , generally after having a losses from trade we become emotional and trade over and over , we lost our motive and mind , as a result become loser. its more appropriate to become cool when having a loss and stop trading for a while.