Stop Loss Settings

[forex_wales]

Hey
Ive been playing around with the stop loss on the demo and found this -
1, for swing trading you need a longer stop loss , say 30 -50 to stay in the trade with so many small pullbacks etc
2.What should the stop be whilst scalping if your only in the trade for say an hour - 2-3 pips ?

forex wales

[DRA]

Hey
Ive been playing around with the stop loss on the demo and found this -
1, for swing trading you need a longer stop loss , say 30 -50 to stay in the trade with so many small pullbacks etc
2.What should the stop be whilst scalping if your only in the trade for say an hour - 2-3 pips ?

forex wales

You will know where to put the stop after you’ve define your risk per trade.

[ndhoanggia]

I agree. It’s all about risk. Never, never place stops based on numbers of pips. Always, always, always, define how much you want to risk per trade, how much you’re willing to lose on that particular trade and that’s your your stop. You don’t want to risk 5 pips for gain 2 or 3 pips do you? The spreads on some pairs alone would take you out on every single trade! By the way, my 50th post! Yay me!

[simbafx]

I agree. It’s all about risk. Never, never place stops based on numbers of pips. Always, always, always, define how much you want to risk per trade, how much you’re willing to lose on that particular trade and that’s your your stop. You don’t want to risk 5 pips for gain 2 or 3 pips do you? The spreads on some pairs alone would take you out on every single trade! By the way, my 50th post! Yay me!

I completely disagree. You simply could not be more incorrect. The market really does not care how much you can afford to lose. Stops should be set for good technical reasons, and if a stop results in losses exceeding your money management rules, either dont take the trade, or reduce the position size.

[DRA]

I agree. It’s all about risk. Never, never place stops based on numbers of pips. Always, always, always, define how much you want to risk per trade, how much you’re willing to lose on that particular trade and that’s your your stop. You don’t want to risk 5 pips for gain 2 or 3 pips do you? The spreads on some pairs alone would take you out on every single trade! By the way, my 50th post! Yay me!

The number of pips does matters, but you should adjust your position size to meet your risk. [B]RISK = POSITION SIZE x STOP LOSS.[/B]

[tingtong]

Hey
Ive been playing around with the stop loss on the demo and found this -
1, for swing trading you need a longer stop loss , say 30 -50 to stay in the trade with so many small pullbacks etc
2.What should the stop be whilst scalping if your only in the trade for say an hour - 2-3 pips ?

forex wales

First:
Never ever ever get into scalping expecting 2-3 pips in an hour!!!Only scalp markets with decent activity!
That said, i find that while trading/scalping it is increasingly hard to find the exact exact turn points.
For this i prefer less solid stops ( anyway, the broker i trade with now only allows to place SL 10 pips away from market) and instead a scale in scale out approach to balance the position vs. all in ( large single position).

but even if i scalp and take 4-5 pips, i only enter the market when i think there is enough room for 15-20 pip move/pullback. Only i happen to leave usually half on the table. but when scalping, better safe than sorry.

ps: when come to news it is completely different, mostly becuase either the broker will wilden the spread, or in my case the first few min might face lots of re-quotes, or get only filled when market really moves against me.

[forex_wales]

I agree. It’s all about risk. Never, never place stops based on numbers of pips. Always, always, always, define how much you want to risk per trade, how much you’re willing to lose on that particular trade and that’s your your stop. You don’t want to risk 5 pips for gain 2 or 3 pips do you? The spreads on some pairs alone would take you out on every single trade! By the way, my 50th post! Yay me!

Happy 50th post - thanks for the help