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.

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.

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.

Trading without stop loss is like risking your trade. You will lose more than you expected. So to save your losses, it's important, or actually mandatory, to trade with a stop loss.

Stop-loss is a term in trading that stipulates the price at which you will get out of your position if it starts to go against you. Every trader should know that this is necessary to cut losses.

Trading withpout stop loss is a very risky idea, especially when we speak about novices in trading activity. In my opinion, if you have just started your trading career, then you're obliged to use stop-loss. It saves you from huge losses and bad emotions. You prepare yourself for losses, shortly after you open a position. It can bring you various emotions, but it won't harm your nerve system as if you would lose all your money. If we speak about professional traders, then they can not use stop-loss, because they know how to weight risks and they're susceptible to high risks. So, anyway, you decide what you want to get from trading activity, experience and money, or just drive and emotions.

Trading without a stop loss is a big no for me though there are traders who do trade without stop loss. However, they have more expertise and strategies. If you’re a newbie, do not trade without SL.

Traders do have a thought that profits get hampered when they put a 'stop loss', but actually that’s not the case. Stop loss helps in limiting your losses, and if you find that the market is going in your favor, you can modify your 'Stop loss' at any time. But remember greed can make you experience big losses, so it’s better to earn less at a time instead of losing everything in one time.

If you are new to forex trading and want to play safe, the first step is to control your greed. Any currency pair you choose to trade in, it is a must to put a stop-loss value depending on your entry price. Thus it reduces the potential risk on your investment by lowering the chances of loss to a minimum level.