Do I have to wait for stop loss of the trade going unpredictable
Cus I don’t know maybe the trade will change
I think you misunderstood the meaning of Stop Loss. First let me tell you about a term which is “invalidation level” or “invalidation point” this refers to a price where you believe, after being touched, the validity of your trade will expire. now, your stop loss should be set on the invalidation point of your trade, meaning that if the price goes there, your trade is expired, if the price doesn’t touch that, you still have hope, considering this, you should not close your trade before your SL is reached.
no - you can decide to close the trade early, if it turns against you, without waiting for it to hit your stop-loss, if you feel it’s best
you have to test and research a lot, to try to judge when that’s best!
(i was just trying to get in before Phonix replied, but i didn’t quite manage it, and his reply was better than mine anyway! )
LOL you couldnt baby
lol, i edited, but too late!!
I really like you mate, and yours was totally awesome too. Thanks anyways babe :-*
It is based on your trading strategy and market conditions. Try to manage your trades. Discipline, and regular evaluation of trades are key components of successful trade management.
do you have information that your SL will be activating in a period of “unpredictable” time in 100%?
On a trend-following strategy I have used I found, when I looked back, that if price went 50%of the distance to my stop-loss from entry, it never came back. Good argument for an earlier close or tighter stop. But you must have the evidence first.
Exactly. Close losing trades quickly as you’re not nursing them to avoid pain. There’s always another trade awaiting.
However, your key focus should be to learn where to place the T/P which is not pure guesswork like a RRR which should be garbaged. Price action should give you a clue how far it will go - usually to a nearest resistence zone where losing traders close their trades or get stopped out.
Then it’s far easier to place your breathing space S/L on route to profit.
You have to use stop loss at a certain point like some pips away from your trade opening position.
Maybe the trade go against my wish
I think beginning, this will happen A LOT. Keep demo trading, keep learning, focus on your position sizing and risk management.
@steve369 has a great answer above.
But some times market intentionally wick down to hunt stoploss then back to the valid zone so in that situation stoploss is of no use
You know a lot of us miss out on a lot of things. First of all your SL should be a part of your strategy backtested and say to a proportion, the market hardly gets to it. I have looked at trades that my stop loss was 3,4,5 pips to closing out and then the trade went back in my favour and these trades were some of the best trades I have had. So your SL should only be a complementary part of your strategy. The only other thing is if you did not take the trade from the exact entry then you may have to recalculate your sl based on your entries and that might now be a decision you will be willing to take based on the strength of the reversal trend. Cheers
In this case the buyer should know when a trade is currently at overbought or oversold. That is why to a large extent you must have a strategy that puts all that in perspective andit’s not just enough to say the market is long and you just jump in. No sir.
The market is never oversold or overbought so that it is not oversold or overbought more
Ugh this is so important!
To me a stop loss represents a trade that is most likely unrecoverable. It also provides protection in my absence. However I have trade closing rules that typically come into force before the stop loss order is triggered.