Every trader’s got their own criteria for installing stops,it also all depends on how much you can afford to lose at an unsuccessful deal. And look at the trading strategy.
You’re certainly correct about everyone having their own criteria for stop setting. But using the amount you can afford to lose is a very wrong way to set a stop. How much you can afford to lose is a key for determining position size, not stop price.
I trade using a safety stop loss > 30 pips at order entry on my favorite trading period of 15 minutes. My “real “stop loss is notional or mental. As the trade progresses, I tighten up the stop loss based on the ATR and the price action. If the trade is moving against me, I will place my mental stop loss and let the market take me out or turn around and go back to breakeven.
Have you tried to use trailing stop loss? It can save you a lot of time and troubles and exclude a possibility of human factor (human mistake)
Stop Loss depends a lot on the strategy. I know many who trade without stops and and they do a great job.
My trading career, I always use Stop Loss .
why? Because it helps me to mange my risk much better and keep my emotions under control. I know sometimes it’s hard to watch when your stop gets wiped out and then market reserves.
I have seen many people who trade devoid of SL and have been very successful for a short period of time but eventually they have had margin call.
in my trading career, I always trade with stop loss.
Once I lost tons of money because haven’t set them . during huge movements , for example while JPY intervention, one can lose everything in couples of minutes.
I never use trailing stop. If price goes more than 30 pips(dependently on currency pair) from entry , I always set BE
That works only if you have placed your stop loss properly. If you place it too shallow or too broad you’d end up losing money.
STOP LOSS is a boon to forex industry that we can some how regulate our losses with this option.
And it all depends on market wether it changes or not.
If people could forecast what exactly will happen there was no need of a stop loss.
So I suggest you to go ahead and test it and try with very minute amount which is also safe for that trade and see if you achieve your result.
Best of luck.
I am sure, they are pro traders and they have a long time trading experience! Since, it’s an uncertain market and there is nothing like in Forex 100%, so traders need to use stop loss trading tool surely!
I’ve never understood the idea of not using a SL, unless you’re sat in front of your screen with your finger ready to click the close trade button. But then again how stressful, unhealthy and inefficient is this approach!
At the end of the day a SL, despite its name and perhaps incorrectly marketed meaning, is just a market order. If there is little or no liquidity at the SL level then it wont get filled at that level. It’s just a back-up, but certainly not guaranteed at all.
Last year for example, when we saw the GBP/USD flash crash in October, +/- 1,100 pips in less than 60 seconds - a SL would have been useless.
Whatever, stop loss trading tool is not only for the beginners! Almost all of professional Forex traders are also using Stop Loss trading tool! Since, there is nothing like 100% in Forex, so we traders need to use stop loss trading for our capital security!
Stop loss is an inevitable part of trading, we know that and it’s very common. Not relevant to explain the importance of this trading approach. But if anyone has the any great idea when it is more appropriate to use SL please share it. I need to know more about how it use it accurately.
The best time to decide where to place your SL on a trade is before you open it. Seriously, if the TA does not show you where to set your SL as well as where to set your entry, its not a good trade. My first SL is always decided for me by the TA: typically, it will be just below a recent swing low for a long, or just above a recent swing high for a short.
Once profit has reached 2 x risk, I open a second trade on the same instrument. Set the SL on Trade 2 at the same capital risk as Trade 1, move the SL from Trade 1 to the same place. repeat this if profit gores to 3 x risk. This won’t happen often but it costs you no additional risk to do it and when it works you will be laughing all the way to the bank.
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Thank you Sir , got something new. I think this more effective for the learners than the importance of description about thread.
You don’t need to be a professional trader to be able to trade without stops=)
Have you any example trades taken without stops?
It will suffer a 200 pip loss unless you have stops in place with your broker, on their end. If you monitor price from your end, your stop loss is likely to be triggered once your system sees a move past your stop loss point.
When a stop loss is activated, it usually means that order has been placed to close at current market price. Any market movement that occurs after order is in place will cause the order closing price to be different from your set stop loss price.
Whatever, without stop loss trading tool means- trading with the unlimited risk reward ratio! So, it’s not proper way to me.