I use stop loss only to protect my profits, otherwise I hedge my positions.
As far as Iām concerned, sticking a SL into a trade is too simply a must! Just imagine your own PC or internet connection goes down without a stop in place, you are screwed until you get it sorted or get through on the phone:15:
If you go to any of the old threads and see how many are still hereā¦
Conspiracy theory isā¦ well it was spoken of in 1910, Wyckoff called it āmanipulationā, more recent educators call it āengineeringā. They are making the point that this is a market āconsciousnessā, the way the market is and has been and will be.
Stop losses are an important tool of viewing the market and how we can āmanipulateā our own approach to a trade.
I often think the 2 words - āstop lossā are negative and thus often used by a trader in a negative manner - ā I will place a SL here, where I am clearly wrong, and thus stop my lossesā - is this negative thinking or just being cautious?
What about setting a SL in a positive approach? - e.g. news is imminent, I have researched and believe that price will rise from 7000, so Iāll set my buy order at 7005.
Hmm, SL, where am I wrong, OK, price rose from 6880, there is clear support there so Iāll set my SL at 6875, at that point Iām wrong.
Why, therefore, recognize that there is every possibility that you will be wrong, and therefore set your SL order not only for an exit, but also for a tp limit for the same value south.
End up the SL has taken you back to zero rather than a loss - after all you were wrong!.
Crucial.
Always be sure to have backup plans for your backup plans.
Personally, I keep the iPad right next to my trading machine in case the CPU crashes.
If the internet goes down, I have 2-3 designated free wi-fi spots within walking distance (< .5 mile).
If youāre not trading with a stop, you need to be sure that if something catastrophic happens out there you can at least protect yourself.
Also good to keep the # down for the desk @ your brokerage in case of emergencies where you need to place a broker-assisted trade.
Well I reckon everyone should use stop losses because in the start when your edge is playing out you might not feel like it but however during drawdown is when stop losses help the most. Now your stop losses donāt have to be really tight, then could vary depending on your system rules.
Stop loss for me is a important trading tool, which protects my investment form getting eroded, only thing you should know where to place it.
It happened to me before that my internet connection was screwing up when I just entered a position without even setting up a stop loss, got burnt a little before I exited my position through my mobile network (I knew if I called my broker to exit the position through the phone it will take them ages!!!)
Green pips youāall
I really enjoyed reading these few lines! A well constructed post:57:
My simple piece of advice : always use stop losses, if you want to hold longer, then look at the longer time frames and STILL set your stop losses there. Find a maximum % of your account you wish to risk, divide it by the number of pips you figure the market will move to then alter your lot size position to fit that.
yes, I donāt use SL for every tradesā¦ in demo. One thing I always remember that if you donāt set stop loss and suddenly the power get off during the news? How can you solve it? I think you will lose a lot money.
Imo if you havenāt put SL sit and watch the chart and close the order in case of abrupt price shifts not in your favour. Thatās it.
I only use a stop loss order to close a trade for a profit and hedge when my trade goes temporarily against me.
its a must if u scalp.
Youāre aware that closing your position completely and hedging it are mathematically equivalent, correct?
Actually, if youāre holding your position for over a day then youāre losing extra money on the hedge due to the swap differential.
Depends on the range! Itās better to be quick and stand in front of your screen if youāre trading for very few pips (small range)
I use stop loss only when my trade is in profit so I can protect it, otherwise I hedge my positions.
Depends on how much you leverage you are using. if you are not using much leverage you are risk free to trade stop free but if you trade with leverage then its advisable to use stops.
actually, come to think of it, itās important to use stop loss, imagine one fine day, if a few big sharks(libor rigging) come in sweep out all those with open position(a bear or bull trap), sometimes, you can see that when a position is stationary.
what do you think?
Ya. I use. When I sit in front of my computer while trading, I do not use it. But sometime I become busy to give my time to family or friends or other, then I need to use stop loss. Otherwise I will fall in loss in any time. It is a bad idea to think that I do not want to see loss in my history. I want to avoid it. So I use it and I close my order if I think that my strategy is not matching with pair.
You have to use stops reallyā¦ They are not against you or something they are there to help you preserve your capitalā¦
Every trade should be accompanied by a stop-loss order. Trading discipline involves using stops, even
in quiet markets. Iāve seen the market explode or fall apart in so many different ways that I never even
think about entering the market without a stop-loss order in place.W. Greenspan
Day Trading Made Simple - YouTube (start from this 24m 5 sec, and hear what he has to say about bad trades)