I’ve learned a ton about stop loss and take profit and all that stuff. But, I’m wondering if I can just place an order with no parameters if I’m just chilling in front of my computer screen. If so, how risky is it compared to SL and TP?
1 Like
Hmmmm. 
Very risky, particularly for newbies. 
I’ve met a lot of traders here who have had strategies that did not need an SL or TP, but it does require much experience. Even though you say you’ve learned a lot, actually opening trades can be a very different experience. I feel like much has been said about something like this here:
3 Likes
But, I mean, you can test this out on demo and see how you’d do! 
1 Like
Thank you! I tried searching for something similar in the forums and couldn’t phrase it correctly.
Some strategies do not use SL or TP because they rely on always having a trade open. It is the “buy when it crosses upwards” and “sell when it crosses downwards” type of strategy that can do this. Just remember that with leverage and margin you are playing with a lot more money that you realise and it does not take much of a swing against you to wipe you out. Look into something called a “trailing stop”, it might be something you can use to stop the worst movements against your position while still giving you room to move.
1 Like
Can you explain to me why you would want to do this?
Well, in my thinking (which is obviously kindergarten level lol), if I’m sitting in front of the computer looking at the charts and focusing only on the one currency pair, I can see where it might hit my support or resistance and when it will turn around in my favor to the opposite side. Just looking for a few pips in my favor. Nothing crazy.
What time frame are you trading? Seems to me if you’re just looking for a few pips, you’re scalping?
The problem, for me anyway, is if I keep the trade open with no stops or TPs, I’m more likely to sit and watch it and try to change it emotionally, rather than just relying on my strategy.
I can see you getting in and out if you were scalping for sure.
1 Like
Trading with SL and without SL are equally risky if you don’t know why you do it. The best teacher is experience. Test both in a demo account to gain that experience. Eventually you will discover why you need it or why you don’t need it, and sometimes you will discover both.
1 Like
Some traders who discovered a method with SL would say that trading without SL is risky. Some traders will say that trading with SL is risky because they discovered a method without using an SL. So it all depends on what they have experienced and discovered.
1 Like
@thebeeznees yes scalping, but is that even profitable in America? There are some foreign brokers that have good payouts, but they’re not regulated and I’d rather stay away from that. From what I’ve seen on my demo, the buy and sell seem to be too many pips difference than the actual price. I don’t know. I’m still finding my strategy.
I guess I’m just less risky. I keep that black swan event in the back of my head. Or what if the pair drops out of the sky, even while you’re watching, and you don’t have the time to react, or your order doesn’t get filled where you want? Will you close the trade then, or keep it running, potentially further against you, again with no SL, potentially losing even more?
Experience is definitely a big factor here.
1 Like
Hi,
I have been trading for ten months without any stop losses. But that is because I am trading cryptos, and use no leverage. There is sufficient volatility in crypto trades to do without leverage what you would need leverage to do to achieve the same result in the Forex market. For example - I bought a crypto six weeks ago and just sold a fraction of it for 100% profit - the rest I am expecting two or three further doubling episodes within 3 months. So to answer your questions, yes it is possible to trade without a stop loss. The problem is if you trade currency pairs (Foreign exchange or Forex) your losses are theoretically unlimited if you do not use a stop loss. In practice, your broker will close your account way before you get into that sort of trouble, and you may get a bill for liquidation costs too
2 Likes
Depends on your strategy, but what if the power goes out? Your computer crashes(if not a SSD drive), Internet goes out. Or you do get busy and distracted and it moves against you while you can’t view your trade.
Literally had a friend lose $200 last week cause he got busy and didn’t have a stop set on US30.
I always set a SL, rarely do I get stopped out and it turn the other way, still happens at times though. Just have to learn what works for you and how to set your stop based on your strategy.
2 Likes