Hi, I am just wondering that when doing short term trades, why would you choose to have a stop loss? Why not just wait until the trade has eventually gone up to make some sort of a profit? Also, I know you can trade at any time but I saw that there is a best time to trade for different pairs based on a country’s market overlapping with another market does this mean that the movement of these country’s currency pairs will be more trendy and predictable?
Im just a newbie to Forex using Oanda but the thing I like about it compared to stocks is that I can place a stop loss and a take profit order at the same time. I usually have a stop loss on all my trades just so my account doesnt get completely wiped out. I set my take profit order to usually yield a quick $300 profit and be done with it or ill use the trailing stop which is nice. It worked well when i was trading stocks and does here to. As far as time frames for different pairs go im still learning that myself.
I use metatrader 4 to trade either manually or with an expert advisor. When I open a trade I have been using both a take profit and a stop loss but am wondering why I would use a stop loss at all because that means I am willing to accept a loss. If you wait long enough the price will go up to make a profit especially if it has been going down for some time. If down then must go back up right?
SL is good because it is like a last line of defense.
If you are new or perhaps miss out on an impt event happening,
the price may move too fast for you to close.
happened to me before…
it dropped like a rock. I couldnt close due to reqoutes.
in the end, profit of 3k became loss.
besides i am sure you heard before of stories " i went to get the drink… when i returned … "
setting a SL doesnt hurt anyway right? why not?
Because it may never come back - at least not before you can no longer take the pain or get margin called.
Also, I know you can trade at any time but I saw that there is a best time to trade for different pairs based on a country’s market overlapping with another market does this mean that the movement of these country’s currency pairs will be more trendy and predictable?
Ha! Ha! Most definitely not. It just means there tends to be more movement because there are more things going on to move the markets.
and please decide on a SL and dont shift it!!! i just did it and regret lol arrgghhh
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You can shift a stop loss - a good idea in many cases. 
A multiple amount strategy makes use of a moving stop loss - moved to “break even”. 
You can also manually use a trailing stop.
However, it needs to be done gently, with lots of breathing room.
The best way is to first use the Average True Range indicator to find the average candle or bar size.
Do not bring your trailing stop loss inside that average!! :eek:
Stop loss orders are useful if you don’t want to sit in front of your trading platform all day. They also prevent you from losing more than what you intended to in the case the Internet connection fails or if you simply fall asleep�
If I were you, Id always put a stop loss order, even during short term trades, just to be prevented�:)
For those thinking: “why use a stop loss, why not just wait until it goes into profit.”
Price will not ALWAYS come back into profit. Price could go against you and not come back into a price range that is profit for hours/days/weeks. In the mean time your account is being drained of money. Also, if you are trading even at the recommended 1-3% of your account a trade that was a 1-3% risk at your initial SL could easily wipe out your account if you just let it go against you without a SL, hoping it will eventually turn and go into profit.
If trading were as easy as not using a SL and waiting for the trade to go into profit, no matter where you entered, EVERYONE would be doing it profitably.
ANY trade you enter you have to accept the risk, or don’t trade. So, yes, a SL means that you should accept the loss ahead of time. Losses are part of trading. If you can’t accept loss, then you shouldn’t trade. There is no system or trading that wins 100% of the time. The best you can plan is that you have more wins than losses and your losses are not large.
As you get more experienced you’ll be able to tell when your trades aren’t going to go well and either not take them in the first place or get out of them early with a smaller loss than your initial SL.
P.S. If you wait long enough price WILL NOT always go up and make a profit even if it has been going down a long time. See my other post on this thread.
What goes down, does not always go back up. Trading is not gravity or laws of physics with equal and opposite reactions.
I agree, you should always use a SL. Even if you don’t implement it into your trade, you should have a good idea of when you should get out of a trade if it’s not going your way. And even if you don’t have a SL in your trade, you really do, its called a margin call, a SL that you always want to avoid.
clarify… when i said dont shift… i mean dont shift it to prevent a SL hit… as you will be moving out of your MM … hee hee
OK, it looks like I misunderstood you!! :o 