Without clear understanding of stop loss one should not even begin to start trading. It is one of the most important aspects of risk management and without properly knowing when and how to use stop loss nobody should step foot in the market. Had it not been for stop loss and nbp I would have been owing money to 3 brokers as of now, Fxview, XM, Pepperstone. And that’s not a good place to be
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So if there is NBP provided by these brokers then why put SL when trading with them.
The problem you refer to is not the problem of having a stop-loss, its the problem of having a stop;-loss in the wrong place.
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I’ve seen random internet people write stuff like that, but it’s contradictory to itself. Why would an experienced trader say such nonsense?
One of the pillars of being a profitable FOREX trader is risk management, without it you can’t really make any profits in the long run. So how exactly implementing a no SL strategy can achieve this is simply baffling to me.
I mean, sue - if you are glued to your charts all day long, and want to manually do that emotionally wrecking process of exiting when you are in minus, then i guess it could work. But, no one is monitoring 24/7 and rare are those can automatically accept their loss by cutting down 5% of your account.
One of the reasons i like the SL (besides risk & money management) is, it just makes the entire process so much easier. If i get hit, well, fine…but if I had to exit the trade manually…boy that would suck…the entire time i would just be hoping that it will turnaround…and that’s how you blow accounts.
Hope this helps…never trade without a SL
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As a matter of fact as per ESMA regulations all the brokers registered with it (not just fxview, xm) are by law supposed to provide negative balance protection. That has nothing to do with stop loss!
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I am actually getting convinced that trading without stop loss is nothing short of foolish. My whole point here was to know what experienced traders think and I believe it’s pretty clear now what maximum of you think.
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I strongly believe in using a stop loss. Mental sl can be something that only expert traders can practice, for rest of us, conventional stop loss is the best way of avoiding losing all our capital.
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Honestly I hate using them but haven’t found any way around them, are a must.
Has anyone ever experienced being thrown out of the market before your stop loss level is hit? Happened with me with Fxview.
Yes, when my combined margin used on other positions (and pending orders) has exceeded the free margin available. At that point the firm closes positions, starting with the oldest first, until enough margin is freed up.
Stop loss should always be outside support and resistance.
Stops are critical for a multitude of reasons, but it can really be boiled down to one thing: we can never see the future. Regardless of how strong the setup might be, or how much information might be pointing in the same direction – future currency prices are unknown to the market, and each trade is a risk, so if you just don’t want to blow your account - use a stop loss
Oh, but anyway, its a probelm, right?
Agreed! There’s also the fact that we can’t monitor the prices at all times. It is just not humanly possible to do it. Prices can anytime take an unexpected turn.
I know what you’re saying, sailed in the same boat. Now I always place my stop loss close to entry while trading any instrument, be it stocks on fidelity or forex on fxview. With both I got different kinds of capital, investment and account types, but I’ll never not use sl.
Anyone have luck using a trailing stop of about 100 points?
A stop loss plays a key role in risk management.
In trading by opposition to long term I always use stop loss. But as any subject there are nuances, this week to win a trade I had to change my stop loss (based of course in technical analysis), because comum stop loss levels are there also to eat your money. My advice is to use stop loss, but each day learn, learn and never stop learning and evolving.
As I was expecting, everyone is telling you that you are nuts not to use a sop loss, BUT hey, you are not. It always depends on your strategy, as you can use OCO (one cancels the other), meaning, you can have an EA that closes a BUY order when you or the EA opens a SELL and vice-versa.
The only down side is that you need to keep your computer on and the tranding program (ex: MetaTrader) open. Also if for any reason you lose your Internet connection for a long period, not having a stop loss could be a problem.
In summary, always depends on your strategy.
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