Hi all! My first post here so apologies if this is the wrong spot to ask but I’d say it’s a beginner question because it’s definitely coming from one. I don’t trade forex(?) I’ve been demo trading ES #F(U) (Also forgive me if this is the wrong forum and place to be.) Reaching out beyond my trading group i’m into to ask questions.
So now for the question!
In the trading group they have a strict rule of gain 4 with a stop of 3.
Do I have to have stops? Sometimes the candlesticks go below the stop of 3 but then of course go back up to make profit. That’s losing money when I could have still been profitable.
I’m sorry if my question wasn’t clear, on my phone and it is kind of a ramble.I have e-mailed a mentor of the group and asked this as well but I’d like others opinions on it. I’m still learning! (Always.)
Definitely not knocking my groups learning, I guess i’m just trying to understand why the enforced rule of losing 3 when sometimes 3 isn’t enough. Or… maybe I just haven’t learned something yet.
stops aren’t set in stone. You also have to look at the market environment, look out for support and resistance for example and adjust your stops accordingly.
You can have a set risk to reward ratio, but your stop (the actual number of pips) can still be variable.
But whatever you do you should always have a stop loss. Even if the price goes back up, there could be one time it doesn’t and you don’t want to risk your account for that.
Stops are crucial with every order opened !!!
but as to where stops should be set, there is not single rule which states that your stop should be at 3 while profit at 4
Your risk-reward-ratio (RRR) must be based according to the market situation and your trading style/plan without forgetting to manage your risk and position sizing
In the end, you want to find opportunities with minimal risk and maximum profits
SL is a must! Believe me. But how to position this SL is dependable and the above posts are all right. Just learn step by step and with the time you’ll master this thing.
