According to me, it is better to gain less profit than to increase the risks of losing. SL is a life jacket for all traders that protect their money from heavy losses.
Yeah that’s true. I also focus on managing loss to gain more experience and learn the most difficult part of trading and consider profits as bonus or reward for my progress in right direction.
Exactly! Traders forget that they are prone to error and get influenced by emotions. And when they trade, things don’t always go exactly to the plan. With the use of SLs , they can prevent unprecedented risk caused due to market’s volatility.
i said :don’t accept your SL ,it will return eventually ,with profits.
To accept your stop loss is essentially accepting that your were wrong with your idea of where the market might or might not go. Perhaps that’s why it’s so hard to do so sometimes. It helps to consider the fact that in some cases, accepting your stop loss actually leaves more money in your account to take your next trade. So would you rather accept that you were wrong and reserve the chance to be right on the next trade? Or lie to yourself about being right and potentially lose the chance to bounce back?
If your account isn’t big enough to withstand the amount of loss you would go into before returning to profits? What then?
I faced such traders during the whole trading activity who always bother about their stop loss. They claimed that if they would place it lower or higher they would become richer. It doesn’t work like that. Trading, as well as history, doesn’t like subjunctive mood and it has to be understood by all the rookies. Professional traders understand this simple truth. If you placed the SL on particular position, then it was probably the part of your strategy.
Actually, placing a SL order is also a kind of art. This thing should be studied by all the traders and it doesn’t really matter what kind of experience you have, whether your are a professioanl or a novice. As for TP, then everything is much harder, because wherever you place the tp, you will always complain about it.