Why people use stoploss when price will go back again sooner or later?
To protect the account , to trade without a stop loss is like driving a car without brakes
Trade on a Friday and leave your position open over the weekend, when the Asian markets open on Sunday, it can get really exciting, you can see some real wild swings, and without S/L you can seriously damage your account, I would also go on to say even place a guaranteed S/L if your broker allows it.
Because of your or statement! Sure a stop loss won’t always be perfect due to possibly of gaps but combine stop loss with safe trading practices such as never having open positions leading up to news releases and always closing positions prior to weekends and you have the beginning of a good risk management plan.
A very few strategies don’t need a stop-loss, but they are specialist and few in number.
If your strategy does not require a stop-loss, it must have other arrangements in place to deal with losing trades. Holding on and hoping price comes back is not a plan, so I have to believe you are not yet trading with real money. Try your strategy in a demo account before you go any further.
I think not using a stoploss or using it ineffectively is one of the major reasons for loss in trade.
Always use a stoploss because you might run out of money before it turns. It doesn’t always return either. Every pair has never return to its all time high or its all time low
Some lessons you have to pay to learn. This one could prove painful.
Ouch! I’ve been there! It’s not a plan. But if you don’t have an exit strategy, that’s where you’ll end up.
Don’t use a stop loss, you’ll find out very soon.
You should always have in mind volatility of the market. If you leave your position without stop loss, you can easily be on a losing side without any clue where market will stop. Eventually in stop point, you might end up losing significant portion of your invested funds.
its an inevitable part of trading and no way to ignore. without using stop loss your trading as like the condition , a shin in an deep ocean without a rudder.
Stop-loss is one of the main things that will help you reduce your losses. This is a very important thing, especially for beginners, because they often play and cannot stop in time. It also helps to avoid a complete waste of investment, which is often especially true for beginners.
I am a stop loss for any trader. I know a couple of strategies that do not use a stop loss. It provides security for your investment and very often saves you from complete loss of capital. It is especially necessary for beginners, who are very greedy for the excitement of trading and often make stupid mistakes.
Stop loss is imperative if you don’t want to fall down the loss pit.
If you are new in this market, using stop loss will be very beneficial for you to control your losses.
I day trade mainly DAX. I always use a stop loss, but I know it can be damned infuriating sometimes. Today I got stopped out by less than one pip, then it went on to tank easy for two hundred pips ! Did I re-enter ? NO I was nursing sore shines
In the situation just mentioned, I have to ask myself - was the trade still valid when I got stopped out ? If it was still valid, then my stop loss was too tight and if a larger stop would have incurred more than 2% risk then stake should have been reduced accordingly.
My trade management was all to cock !
I think, perhaps, stops should be there for hard emergency, not to automate trade management exit.