Stop Loss/Margin of Safety

I always try to set my stop loss at 0.75%- 2% max of the account size ,if that's not possible at the time I wait for the next signal ,that's the great thing about Forex lots of opportunities ,you can apply this most successfully on extreme moves outside the normal movement of the trend ,BB indicator for example is useful for spotting these moves ,other patterns like breakout moves after long consolidation are a bit more tricky because it's normally a fast move with a -60% re test of the full candle then a bounce higher.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.

Stop loss is very important. Because there is no trader who want to loss his capital much. Stop loss limits the loss. Every traders want to secure their capital. By using of stop loss a trader can trade in the forex market without any tension. I am also a trader. I am currently trading with Tpglobalfx. I always use stop loss while I am trading in the market.

Jonny87 posted:
Stop loss is very important. Because there is no trader who want to loss his capital much. Stop loss limits the loss. Every traders want to secure their capital. By using of stop loss a trader can trade in the forex market without any tension. I am also a trader. I am currently trading with Tpglobalfx. I always use stop loss while I am trading in the market.

Sure. SL isn`t invented just for nothing. 😉

Marketmultitool posted:
I always try to set my stop loss at 0.75%- 2% max of the account size ,if that's not possible at the time I wait for the next signal ,that's the great thing about Forex lots of opportunities ,you can apply this most successfully on extreme moves outside the normal movement of the trend ,BB indicator for example is useful for spotting these moves ,other patterns like breakout moves after long consolidation are a bit more tricky because it's normally a fast move with a -60% re test of the full candle then a bounce higher.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.

That’s a good strategy. I prefer trailing SL in breakout trading. I usually take 1-2% risk per trade.

If your SL level 0.75-2% per one trade, your TP must be 2-6%. Doesn't it seem too big, or do you trade a couple of times a month?

We can't put stop loss just by percentage. Stop loss should be based on your strategy and where the next support and resistance level is. You also need to consider your take profit and what is the possibility of hitting the take profit.

In fact, I don't understand traders who don't use stop loss. These are the basics of risk management. It's good that you use it, you have a good strategy. Everyone puts a stop loss for himself, under the parameters of his account, and this is a good approach. Trading is usually unpredictable and you can't always keep track of a deal, without any breaks or something. Sometimes it only takes seconds for the price to drop dramatically, which is difficult to predict. For these and many other cases, you need to put a stop loss)

Stop-loss is a very important tool for new traders in this market. Because it helps a trader to control their losses.

I think SL will help every new traders to deal with the losses.

Stop loss is essential to minimize risk. Forex is risky market. So, placing a safety pin in trade is a good trading approach.

Yes, that’s true, Stop/loss is really very important if you want to limit your losses. Traders should always use it while trading.

In order to put a limit on your losses and to keep a check on your profits, it is important that you consider stop loss. It is rather advantageous.

In order to put a limit on your losses and avoid them, stop loss can be effective for trading. A lot of traders use stop loss to limit the possibilities of their loss.

Stop loss is an important part of your trading journey. You must be able to use it every time you trade.

To become a successful Forex trader one must have a solid money(risk) management.

Here is money\risk management guideline

Take Profit = ATR x 1.5
Stop Loss = ATR
Risk per Trade = 1%
Max Open Trades = 5
Lot Sizes = mini or micro

I use 'pos_size’ indicator via MT4 to calculate my SL & TP and get my ATR

Stop loss is a very useful strategy to avoid losses. It is important for every trader to analyse and give proper attention to the risk management techniques. It does help in reducing losses and risk.

I never trade without stop loss. I make all the necessary calculations and ensure to use stop loss.

Thanks to stop loss, we can set a clear loss value, which is set as the risk for a given position