OK... Let me preface this by saying, I'm still working within a demo account. So, please try not to flame me as I'm still learning.
I've come to the conclusion that your biggest friend is leverage in this game, but your biggest enemy is LEVERAGE in this game.
Recently, I've been manually trading and looking for momentum plays. Getting in for a short time and making a small amount and getting out. The demo account size is $500, because I wanted to test the viability of starting with $500.
My trades have gone pretty well. I'm sitting around an 80% win rate, but it's only been a couple days, so we'll see what happens long term.
I have not been using a SL at all and instead just been using small amounts. Or, I thought that they were small, but after reading on this forum they seem to be too big (Lot size = 0.1 for $500 account).
Anyway... The few times that I have put in a SL. Without fail it stops out only to then go the way I originally thought. So, had I of not used a SL, I would have profited but instead booked a loss.
Now, that said, I'm not advocating that I shouldn't use a stop loss, because I had tried an Expert Advisor I created an it made a trade (in error) but I left it there just to see what would happen with the current ES drawdown. And... I see what an impact leverage can be against you. That EA traded a 0.15 lot of ES and it is down about $250. So, I see the importance of a SL.
My question... How do pick your SL level without getting stopped out everytime. Can someone give me an example of the process they use to pick their SL?