Trade without stoploss, think out of the box, can you?

Beginner Questions Trading Psychology
1

Hello everybody in the babypips.com. I have traded for 1 year. I think i’m a newbie no more on this market, but for such time i of course learned some basics that i can understand all you guys wrote. First of all, thank all of you for your distribute all info in this forum.
And sorry for my bad bad bad English.
So, let’s talk about the main term.
I just think that why we have to put stoploss, and why we use the leverage so high, we use the money that we dont have???so LET’S GO OUT OF THE BOX!!!
All days, all times, we hear" we should taake only 2% of risk, only take ratio of 1:2 1:3 ect…" Out of the box that i want to share with you is when we use stoploss, we accepted the loss that we want, if we let is run…maybe your account would be blown, or the price will come back with your direction, and we will win. The key is that we use Leverage so high and we can end up at winning, our account cant survive with such big leverage!!!

many will think I’m stupid! but let’s see. why we lose. We lose because STOPLOSS…
I’m very waiting for your answer, if it’s crazy, explain me! And I will show you my result with this edge in my mind!:7:

2

Hey there, I have said it before and will repeat it. Trading without a Stop Loss is an anti-trading behavior and a sin in all description.

Who taught you that? Or is it just a random thought?

3

If you will trade without stoploss and your trade goes wrong in minus, you stop loss will be the amount of money you have on your account, so you will lose anyway.

4

Hey andreiirk,

As the other members have already said, trading without a stoploss is by far the fastest way to blow an account. At the end of the day, [B]leverage is neither a good nor bad thing![/B] It enables you to take trades and make more money than you could without it, but it also enables you to lose more money faster.

Yes, having a stoploss does sometimes knock you out of the trade that would soon have turned around and went in the direction you hoped it to go, but the reason we use stoplosses is simple: [B]if a price hits our stoploss, we know our setup, or reasoning for entering that specific trade, is invalid.[/B] Stoplosses are critical to trading. There is no such thing as a professional trader who doesn’t use at least a mental stoploss.

5

Ever heard of “basket trading” -is called I think? Well, you take all the pairs that your broker offers on your trading platform and lettem run concurrent without placing a SL on any… They hedge each other and you close the ones that really go in the bad… GL lol!

6

It is unexpected to see such many replays from you guys, I really appreciate. Because the term " with or without stoploss, how average is reasonable" are as old as the age of our planet, LOL. And who question these is the most “newbie” trader in the world!!!
GRIX FX ,konan, i read a lot of your post, it’s your thoughts and it’s very useful.
For 1 year of trading, now i really don’t agree with men, whose account is 100, 1000 $ but they use leverage and each position is 0,1 or 1 standard lot. It’s absolutely crazy when they have only 100$, but use 10000$ = 0,1 lot to buy or sell, there’s something wrong, with 100$, i think 0,01 is reasonable, for example. It’s about leverage, the more leverage, the more you lose and the earlier you get out of the game, no other way more.
The second thing I want to share, it’s the HEDGE that Mr Konan reminded. A hedger buy a pair, when it goes with his direction, go higher, the tool, the “guess” is excellent, but when it goes against him, go lower, what would he do??? He sell and go with the BIG CURRENT of the market, and think his loss is minimized. But after all, loss is loss, and “buy” negatives “sell”, no profit is taken.
Well, I’m trading without “stop loss”, without “take profit”, with the minimum size of position as i said, one way that helps me survive with the storms on the market.
And hedging is used. BUT a big " out of the BOX" maybe only with me, is using not buy and sell against, or sell and buy against. When i buy, i will buy then, when i sell , i will sell then. With this, when my position goes with me, it’s very bad bad ( CRAZY) because the profit is small ( my size position is small). But when the price go against me, oh it’s wonderful, i take another position ( example if i went long, then i will go long again).Because the price always has potential to turn back with my first direction of this trade, if you have enough blood to survive, loss is when you cut your loss or your account is dried with blood.
Guys, I’m not good at psychology, and I’m a weak-mental. So this way helps me out of the fear when my position takes me loss, and when it goes right, it’s not fun because the gain is very small.
Some words, I will post my result through a month, every opinion is WELCOME.
andreiirk!

7

I think its possible to trade without stop losses, but at some point you will need to cut losers.

8

Not putting stop loss means [B]overconfident [/B]that your strategy will work.You need to put it even though the stop loss point vary according to your strategy. Anything could happen in Forex, no matter how good your trading strategy is. So I suggest to put stop loss at least at half point of your account… If it hits and turn back again, do not blame yourself, do not feel guilty.You could have lost everything in your account. Maybe after that you should improve your strategy and analysis to make it better next time.

9

We don’t lose because of Stop Loss. We lose because the markets are never 100% predictable. The Stop Loss is just a safety net to ensure we live to trade another day and control our losses. I honestly have no idea why any rational trader would want to trade without a Stop. But, whatever. Someone has to lose money I suppose.

10

Can one trade without a stop loss? Sure. Just don’t use any leverage. Open a position and let it run – at 1X leverage. You may gain or you may lose but you will not lose everything unless 1) the currency(ies) you are trading disappear, 2) your broker goes belly up and your account is liquidated because your broker was actually just some guy named Bob who took your money and now lives in a tropical paradise courtesy of [former] clients like you or 3) the zombie apocalypse comes to fruition, in which case we all have more pressing concerns…

Otherwise, your position will simply be an unrealized gain or loss. It would not become an actual gain or loss until you actually closed the trade. It would just float around indefinitely in the cyber-money world.

Now the bad news:

Even if you closed for profit it would most likely be meaningless chump change. The fluctuations in currency prices are extremely small. Let me restate that with a bit of emphasis. The fluctuation in currency prices are EXTREMELY small. Unless you are trading incredibly large sums of money the gains/losses are negligible.

In order to overcome these extremely small price fluctuations with small sums of money, brokers permit leverage. Every dollar you trade can become 2, 10, 50, or in some jurisdictions, 200 or 400 times the actual amount of money you are actually using to trade with.

Therein lies the rub. When the price goes against you – just a little, teeny, tiny bit – it is magnified by the leverage you use. For every $1 you would lose on 1:1 you can now lose $50. Every $10 suddenly becomes $500. Every $100 becomes $5,000. In the case of our non-American friends that $100 loss can easily become magnified to $20,000 (assuming my math is correct after 4 beers at Happy Hour).

No leverage? Sure. Trade away. No stop loss required. High leverage? Please just donate the money to a worthy charity instead, before attempting to trade. You almost certainly WILL lose it all in one swift turn of the market without a reasonable stop in place.

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11

Many investors who trade shares are trading without levarage and many people actually buy physical gold and silver, but they are still able to make returns. You don’t need high leverage to make money.

12

hello everybody again! thanks for replay my topic!!!
Through a week, i really traded without stop loss. Honestly, it doesn’t fit every one.

  • [B]About leverage[/B], i only trade 0,01 lot ( with 250$ i trade 0,01 lot each position and with 1500$ i trade only 0,01 lot, too, but for higher time frame: 1 day and weekly)
  • entry : I take long or short only when there is a clear trend on 4h or 1day or 1Week, and the Statistic indicator shows area OVERSOLD or OVERBOUGHT.
    . Actually i don’t trade for a living and I treat it like a game, so i don’t need to risk so much to win enough for a living :slight_smile:
13

If this way we think out of the box not to place the stop loss then there are all chances that we may soon be also thrown out of the market as well very soon.

14

Nice one, out of the box, out of the market.

Grix

15

Well it depends: on FX, the volatility is so low that you need leverage to make money. The same for fixed income. On the other hand, equities and commodities aree much more volatile:
However, on any market, professional trader would use options and futures, which by definition are leveraged products!!!

And regarding the main topic: that’s okay as long as the market tend to be mean reverting. But if at some points the market goes in one direction very strongly, you will loose a lot. You would have been short usd/jpy 1 year ago, you would now have lost 30% of your capital. Stop loss is not meant to make you lose money: it is meant to make you exit the market when the scenario you expected is not fulfilled. In the end it might go back to the original price. But you never know!!!

16

If we think this way of thinking out of the box and not placing the stop loss at suitable level, then all possibilities of losing money big time.

17

I know a professional trader, sometimes he’s trading withoug a stoploss: At news.
He goes in with a very small position, when price goes againts him, he adds to his position until a correction comes and he sells the whole position with profit.
However I think one needs a lot of experience and it has a certain risk.

18

I also made some trade without SL and it is possible but I had to sit in front of the computer for hours for this…if there is a clear trend as you just mentioned, you can go long and sell even within an hour.

19

Hey Grix

To keep you in the market without SL, do not leave your PC and if you do, then the golden dialogue (out of the box…out of the market ) will come true…

20

Well ain’t sure that this is anything that I may ever try doing this. I love my money too much to try and trade without a SL. This is just not my thing.

Grix