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.
If you’re getting stopped out more times, that tells me that u probably need to work on your entries, your either getting in the trade too early or too late depending on what the bias direction is. Trading with a sl is part of my trading plan, it helps me to evaluate my entry strategy, instead of looking at your stop loss being hit early then going in the direction of your analysis( as a negative thing) look at it as a learning opportunity to evaluate (better entries (sniper entries) that will maximize your bottom line. Just bc u missed the mark the first time I’m sure that the market gives you signals that u can jump in at the next entry point if you’re trading with the major trend
Would scalping very small pips not require stop loss? Also because it might be too late by the time stop loss gets set?
Anything that seems very perfect can in reality be never so. Same is with stop loss, it is no guarantee that you will sell at that price. If you are so afraid of risking your money, why are you even trading in the first place.
C’mon man, we are in it to make money, not to be foolish and throw money.
I always wonder when I come across such people that how are they even managing to trade. With this kind of attitude it seems highly improbable.
Before you guys become judgemental let me tell you that I have easily been making 20% weekly profits. I will never trust any code or so to trade on my behalf. That is just preposterous.
I also don’t rely totally on algos but they surely help a great deal in making trades better. I have seen a massive jump in my profits since I started use of indicators and other tools on Fxview and Etrade. I don’t use it specifically for closing trades, but have sorts of alerts installed.
Are there still brokers that don’t allow use of stop loss?
I enjoy sky diving. Are you suggesting I should just not bother with the parachute because I know the risk of dying if it doesn’t open?
I completely agree with you. It is not possible to be on the screens all the time. You will never know when the markets take the turn and you evaporate all the gains.
Stop loss helps you minimize the risk. So if you don’t have a strategy planned then I would suggest you to use stop loss
I agree with you. We can’t control the risk but we can protect is as much as we can. So without any second thoughts stop loss is a must. Unless you are a pro trader don’t risk it