Well, I’m always in trouble in knowing how much pip I should use to set my stop loss! But my stop loss according to my analyzing is too high than i can afford money to loss! So, please tell me can I put stop loss how much i can afford to loss, or it may be too risky?
Others say, it depends on your target profit. For example, if you trade GBP/USD with Daily chart, and your target is 100 pips profit, maybe you can set your SL for 50 pips. But if you do scalping with 15M or 1H chart, and your target is 30 pips profit, maybe you can set your SL for 15 pips or 20 pips. There are no certain rules of how many pips to set in our trading. I guess it’s better if we practice it for ourselves, because each trader has their own trading style.
Seriously. If the location you are identifying for your stop is too big a risk relative to your account it means the trade size you are thinking about doing is too big. Put on a smaller position. If your current broker won’t let you trade smaller, find one that will.
This of course assumes you are identifying good stop locations, which you’ll know if you’ve done some testing. No one is going to be able to tell you where to place your stop unless they know exactly how you’re trading, and maybe not even then.
I think it depends on your strategy that how many pips is a good for your stop loss . If you are using lower time frame then your stop loss should be about 30 pip.
Try using position size calculators. This way you can adjust exactly how much you’re risking regardless of the # of pips of your SL.
Have you tried considering average true ranges (ATR)? They basically tell you the average # of pips that a pair has moved over a period of time. This can give you clues on how wide or tight your stop losses should be.