Always use a stop loss no matter what.
Yeah look at my aud usd thread. its 100 percent in profit
My strike rate is about 90 percent overall and thats before i even started posting. At the start they called me a fool not calling me a fool now 
nothing is 100 percent but very rarely i lose.
Im very high iq at maths. It’s just maths not fundamentals not charts maths is the key (this is what i do not advice to you, as i’m very superior at maths.)
I don’t trade like everyone else.
I do hundreds of combinations a day an hour
I’m just posting a thread to my link to show it is possible but i think i’m one of a kind really.
You are better off taking advice from the other members as not many people can do what i do maths wise
Very good ideas and advice from all of you, great info.
and a money maker machine for brokers. stop loss needs to be given some award, truly
One of the big problems with stop losses, other than not using them, is knowing where to put them.
Going by posts on BP, too many traders seem to decide they want to make say 20 pips profit ar a r:r of 1:2, so stick their stop at 10 pips, irrespective of whether or not that is a sensible place to put it.
I always place stop loss in all my trades it is important for my strategy and it helps me control de risk and managing my capital.I dont see how is possible to be successful trading forex without using stop loss in the long run.
I agree, Eddie.
I want my stop-loss, at the time of entering a trade, to be wherever the price has to reach for my entry-reason no longer to be a valid one (in other words, I no longer want to be in the trade). Like many things, it’s a simple enough concept but its execution can require some experience and planning. With the short-ish intraday trades I do, it’s always felt natural to place stop-losses either just under recent support/just above recent resistance, or to define them in accordance with the current volatility (even if all one uses, to do that, is some kind of formula related to the current ATR).
This is something that real estate teaches us: when prices are pushed higher and you have to buy at that time, you are buying at a peak and the market rewards sellers with high returns… Then, the market rebalances significantly and you are stuck with that house because of negative equity (on the purchase price) and you not wanting to make a loss, so you wait for the market to come round again before selling at break-even or higher… This is an example of buying an asset without a stop loss; all you need is time to wait to see if prices will revert to mean or higher…
So it is for trading.
Sorry, PMH, but I personally think this is a really misleading , and potentially very dangerous and expensive, approach to holding losing positions in trading.
There is one huge difference between owning a house with negative equity and holding a position that is losing. Whilst you are living in your house, negative equity does not cost you anything. It is only a theoretical current valuation and does not affect your house running costs or your mortgage payments in any way. It only becomes relevant if you wish to sell and move or borrow money using your property as collateral.
But a losing trade requires margin cover - and the deeper the loss the more funds you have to put into your account to keep it going - and most traders, especially new traders, have limited funds available. If one keeps a trade open purely in the hope that one day it will return to mean or better then there can easily come a point where one’s funds are actually exhausted and the broker closes it out at the worst possible level leaving you broke and positionless and with no possibility to even continue trading.
One can look at pretty much any longer term chart such as the monthly EUR/USD below and spot levels where a losing position would still be losing many, many, years later. Would one imagine keeping the same position open for even 10 years or more? Would one’s life remain the same for so long that you would still wish to be following such a millstone? - and with the same broker? - and limiting one’s ability to trade other positions in the meantime? Of cpurse, one can say that these kinds of extreme peaks only occur very rarely but there are clearly many shorter term moves that can go deeply against one’s position and don’t even need to be the result of a dramatic move like Brexit, but can creep deeper and deeper whilst slowly tightening the thumbscrews around your wallet.
…and if the property with negative equity is not your own home, but a property owned by a property fund whose funds you are managing, then the pressure arising from your purchase decision might be very different! - but at least then you still have the possibility of a rental income whilst waiting for values to rise again 
In addition, I believe that trading, by definition, requires a reason for each trade. And that reason must include at least four aspects:
-
which direction we are expecting
-
at what level we wish to take our profit
-
at what level do we conclude that our reasoning behind (1) was wrong or has changed
-
at what price do we close our trade if the level (3) is reached
I do not believe that holding on to a position regardless of events solely on the expectancy that one day it will come right is trading. There might be other circumstances why one might do this, but it is surely not a basis for leveraged trading?
But that’s just my view, PMH
Excellent post, Manxx! Yes, I only meant properties bought as primary residence, not for investment by funds etc. Yes, I agree with everything you say, and indeed there are cyclic drawdowns and then there are broken cycle drawdowns with no possibility of reversion: the housing market is more cyclical, generally, than currencies, but it is not to say that correctly timing the housing market or the currency market is the only way to profit: exiting is the big question, at times, and that includes how to handle losses.
Timescales, as you say, are not made the same for all traders: if you put funds in a bank, you may tie them in for five, ten, or more years, yet traders often do not think about positions in this way. Your bank could go down, just like your broker…or lose your money…Look at what happened to Bob… Yet we trust brokers less and want to whip away any gains quickly ‘just in case’…
It goes back to the question of personal goala. .for the most part, stop losses are a good way to handle trading.
Negative equity can be moderated by interest rate imbalance, that is positive swap, which is just one example where you are earning interest while in a drawdown… Not all drawdowns require additional funds for maintenance…
I think you are completely right here. The point with this whole discussion comes down to having a clear idea of what one is trying to achieve and what are the goals and timescales involved. A long term investment of one’s own funds is an entirely different ball game to leveraged speculative trading off a 15m chart! There is no sense in letting a position aimed at a 15 pip profit run into a long-term loss bearer. Whether one actually applies a specific, automatic stop-loss or just weighs up the situation if the price reverses into a pre-defined zone is a matter of personal choice, but the principle still remains that there should be a recognised zone/level where, if reached, one reconsiders the validity of the trade. And if that validity is no longer present then there is no justification for continuing the position simply on the hope that one day it must surely “come right”. On the other hand, a long term investment in shares should not be closed just because one day the price slides a bit!
Both long term and short term positions, and both own cash or leverage, should always be based on a plan - they will just be very different types of plans!
This is actually quite interesting at the moment. There are certain trends and cycles that have been around for so long that we assume they will [I]always [/I]continue. But sometimes even these trends can change. For example, in this country, there is a distinct structural change taking place in our housing markets and prices.
Many young people are shunning the idea of always moving to bigger and better houses. Instead they are looking for very compact housing with no wasted space inside and which are extremely energy-efficient and environmentally friendly. In this year’s housing exhibition they exhibited detached properties with only 30 m2 of space and houses wihch retain and recycle all their energy. The impact on prices is that in some extreme cases the “value curve” is becoming totally inverted with new compact flats costing more than older 3/4 bedroom detached houses. Nothing these days is certain any more!
I am not sure I understand what you are saying here. What is “positive swap” in negative equity?..or are you only referring to positive carry with positions in forex and not housing?
Great reply, manxx…particularly the detail about housing developments!
Yes, I was referring to positive swap in a ‘carry’ or ‘reverse carry’ trade…
You, Lexy, Turbo, Eddie and I should really get together once and have a good chat about trading, face to face… I bet it would be fun… I love the quality and respect of our exchanges …
Agreed about targets versus trading on hope…
you sir, need to empty your postbox on babypips. it say “pimpmehappy has a full postbox and camt receive private massages unless he empties it” 
Haha… I deleted about ten messages a few days ago…
Try again, I will hopefully be able to receive messages again
Maybe when you get to 5,000 posts, they’ll allow you to store 51 messages instead of 50. Now there’s an idea: make the private message storage capacity proportional to the number of posts? (No, that might just encourage fatuous posting, I suppose. Probably not as easy as it looks, running a forum?).
you got mail
Well that would be interesting! How about a surprise drop-in on Bobbillbrowne and check out his latest with the boxes…
Boxes? 
what do you mean? …
Hmm Australia is a bit far… Maybe meeting Baz may be an easier trip for me
[B]
BMB - Bobs[/B][B] Magic Boxes. C’mon bro - get with the program
[/B]
[B]Actually, Manxx knows something exciting about my work and the direction it heading. But how does that relate to this thread and the use stoploss?
I read through the thread, normal bull from the fisherman, good reason he got banned. The normal verbal diarrhea from the repeat offenders. Yes, we know the use of a SL is a good thing. And, of course, the regulars who seem frustrated almost because of the need to repeatedly answer the same old same old because newbies don’t know how to use the search button.
IMO, it comes down to our reason for being in the market in the first place. Are we speculating for growth or investing for return and asset protection? Generally, the underlying presumption on this forum is we are speculating for growth. Use of a stop loss is critical for this style, not for any of the normal reasons but to simply free up equity. Money locked up in a losing trade is money you can’t trade with, simple as that.
But the markets aren’t there for us to speculate on, they serve a much bigger purpose. If you have the funds to be lucky enough to be investing for return then I reckon you’re better off handing your money over to the pros and going for a game of golf instead thus eliminating the need for you to use stop losses.
And now a song for the lords of the underworld
[/B]
[B]
[/B]
Hands down best post I have seen all day.