Hi Everyone
Is it essential to put a stop loss orders on an FX order Full contract or Mini? or does it depend on the time frame one is trading
Neville
i encourage the use of a stop loss but there are multiple schools of thought on this one. some people believe that using a server side stop makes it easier to get stop hunted for example.
stops are also great for securing pips.
Stop loss still very important to manage the risk in trading, not always as trader they can analyze trend market with accurate all the time, and stop loss can manage the risk in trading because facing wrong decision or order against the trend, I am still using stop loss especialy if trade in real account.
Always use stop loss, but keep in mind that the broker may sometime fail to fulfill it (as it happened with the EURCHF crash).
From an experience standpoint after losing alot of money…YES
Using Stop Loss orders is essential for beginners no matter what the time frame is.
Basically the size of stop loss shows how much are you ready to lose in the hope trade will rebound in your favor. In intraday scalping its better to use tight SL as you’re basically surfing on many small waves and loose SL can easily mess up your trading. If you’re long term trader you have to put wide SL to stay unaffected from daily volatility.
I’m gold and Oil scalper and set very tight SL on my Hotforex platform. What is more important a trading platform should be stable so SLs are triggered without slippage, otherwise there is little avail from them.
always use stop lose if uncertain, no matter what the out come is, and remember to let go of a losing trade, avoid the habit of adjusting stop lose negatively, but i guess its ok as long as the trade is going your way. but keep that balance, many will fall to the trap of adjusting SL hopeing the trade will change directions and most of the time it will cause u dearly.