i have come to understand that many forex traders do not use stop loss and take profit, how do you meet up with the profit you aspire to meet up at the end of the day? is it by not using S/L or T/P?
Maybe they do, maybe they don’t but it’s NOT recommended from my experience.
Don’t follow others. Use your own rules. SL will protect your capital to trade another day while take profit will give you a target to achieve.
2nd what Perry said.
You need to develop your own trading style/plan which is based off your comfort level for risk and long-term goals.
This can only come by rolling up your sleeves, and spending a large amount of time via trial/error on what works for you specifically vs. what doesn’t (Strategies, brokers, etc).
You’ll only get out what you put into trading.
its not necessary to use stoplosses, its just a tool for trading, but i prefer using stoploss as they are very important when you fix a wrong trade.
You can set multiple TP’s to take different amounts of profit at different stages of the trade, seems to work out better in the long run I think.
TBH, people use SL for emotional relief, not for reasons of sound strategy and money management. What you should do is concentrate on buying low and selling high -whatever that means for you.
So imagine you bought something believing it is ‘‘low’’ and then it moves 20 pips lower… has it suddenly become high? Well… once in a while, the answer will be ‘‘yes’’, but it doesn’t make ‘‘always use SL’’ approach right .
People are lazy + results oriented. They get a big loser and they start to think they should have used SL, then they start using SL and get stepped out only to see market reverse.
Those are some pretty harsh observations which I don’t fully agree with.
SL for emotional relief / not used for strategy/money management?
I disagree completely with all 3 premises.
SL’s offer much more than emotional relief - they protect your capital.
As to the strategy/money management - not using a SL isn’t always the most “sound” strategy nor the proper way to manage your money.
No trader can claim 100% accuracy, so, by logic that means in some instances he/she will be on the losing side of a position. Do you advocate seeking 100% accuracy and never closing out losing positions? This style of trading would not be sustainable.
There is contradiction in these 2 sentences.
You should read my post some more times, because it appears you didn’t understand anything of what I said.
SL is just a one way how to exit a trade and you are either buying or selling. I clearly said that one should ‘‘buy low, sell high’’, that means one should exit a trade when it is high/low and not because it has gone too far. As I said before, ‘‘high’’ could possibly be 20 pips lower, but one might find it at BE or +10 - it doesn’t matter.
Yes its true that some senior traders don’t use stop losses in their trades. However this doesn’t mean that they don’t manage risk in trading. If a trade has only been exposed to the common platforms, using SL’s may be their only choice. However it isn’t the case across board.
Hello to the Original Poster (‘perpetual’) and welcome to the forums.
This very topic has been covered many times on BabyPips…Take your pick:
I could give you many more examples… Have you done a search for the topic on BabyPips forums? Try reading some
of these previous threads… Just asking the same question will not make it more interesting (sometimes that may change, of course, depending on the question)!
As previous contributors to this thread have said, it is not advisable to avoid using stop losses, but it is not impossible to be profitable without them: the choice, ultimately, remains with you, the individual trader in front of the charts…
Have a read of the linked threads, and see how much this topic has already been discussed - and whether your question may have already been given even more answers than you may have imagined!
Happy trading.
thanks to you all, and that is to say i will use stop loss and take profit in order to minimize my loss and maximize my profit.