Do you know what's the most important thing of Forex trading?

A good Stop Loss setting is the most important thing of trading system. Why ?

Let’s say you have init balance 1000USD , you entry a order and lost -50% , then you left 500usd only , which mean you have to make your account increase 100% to recover to 1000USD ( 500 * 200% = 1000) .
This is harder then you lost -50% , the piont is that you should stop your lose as good as possible, the balance you lost more , the much harder you recover.

It’s not saying that a small range’s StopLoss setting is the best, if the stop loss level set to too small, your position will be easily hit by the market move , especially when the data/news come out.

So, how to set the best stop loss level ? There’re some base ideas:

  1. use recent Support level or Resistance level
  2. By Boll band up/down edges.
  3. By trading volume peak
  4. By AI model (we will show next article how to)

Stop-loss is at the base of all risk management. Everyone has a price at which they will either get out (or rarely start hedging). If a trader doesn’t act on this price level, their broker does it for them by either making a margin call or closing positions.

There are multiple ways to win at trading but the only way to lose the game is to get wiped out.

yes, that’s risk management. Many traders don’t set stop loss .

Wow, I not sure there is any traders that would have a stop loss which risks 50% of their account balance. This isn’t trading this is gambling.

The stop loss should be used as the basis of you working out how much your opening position size should be. You should ideally be looking at only risking 1% or 2% a trade, so you need to only open a position relevant to what your total loss will be if it triggers your stop loss.

it’s just for example

So confused!

You ask the question how do you set the best stop loss level then give 4 different answers.

As for me I don’t even agree with you that a good stop loss level is the most important thing in trading. I believe a professional teacher who has personally worked in the industry for large financial institution and can pass on industry secrets how to trade is most important.