So … I havnt been trading live for very long at all, I have been practising on a demo account ( still progressing with my school of baby pips) and have been profiting daily on the days that i find work the best so thought ok let’s take the next step.
I’ve now began trading on my cent account and am finding that I am making many losses (around £25-50) majority of the time due to my stop loss so it is actually becoming a nuisance as price then reverses to where i want it to go but my position has already closed …
I’ve started with the basis of small steps so the losses I am encountering at the minute are small compared to my capital but just want to see if anyone could possibly give me some advice on where you would put your stops on an order
It is very difficult to comment on your situation with so little detail, but it sounds to me that you are trading on a low timeframe, maybe 15m - 1m range? and with tight stops and a close target level? If so, then what you are experiencing is very typical for that kind of scenario.
And add to that the suggestion that if your losses are frequent and always in the £25-30 range then your position size is far too large at your stage in your trading journey.
You do not mention what kind of trading method you are using so it is difficult to say anything more. But obviously you need to adjust your strategy to allow your trades more room to wiggle around. Maybe a longer timeframe such as 4H or 1H, with smaller position size and wider stops will help here?
So since your post, I have sat down and put the time in to my trading strategy … suited to my personality and my realistic goal for my first year I am mainly trading for the short term always checking H4, M30 and back to M1, checking for news updates which could affect my position, checking chart patterns, indicators etc before i even open my position. I have also taken on board what you said in regards to putting my stops too close due to volatility (which I agree they were)
And hurraaahhhh … this seems to be working for me since I have been practising this and i hope it continues. Just wanted to say thank you for your input into all the threads as I find them very useful and I’m sure alot of other newbies do too
You must have to do a long-term trading if you make a stop loss. You can make a reasonable amount for a stop loss. When that loss occurs you trading stops. And you can save yourself from huge loss. From this option your mind might be relaxed. Thanks
I am a scalper - love it. Once I stopped setting stop losses and only set take profits, my bank account tripled. In fact, I’ve only had 6 losses out of the last 66 trades I’ve scalped. And, the losses added up to less than $5. So…stop setting stop losses on the lower timeframes.
