i do not trade without stoploss. becuase i do not sure about order. it can burn my account
My advice is firstly, never ever trade with a leverage above 1:10 if your account size of around $1,000. If your account size is $5,000, use at most 1:50. $10,000 then think of 1:100
Secondly, always set a stop loss. You may get lucky once when the market goes does and shoots up, but all it takes is once when it goes against you then you realize youāve lost all your money. Forex is not a game of chance, itās a calculated strategy intensive game that mercilessly weeds out the careless and carefree.
i ussuall reminde my friend. donāt forget stop loss. it is very important in my stategy. because we can safe with it.
I like the idea of trading without a stop-loss but it means that we need to have $50-100k+ to open a position of 1 lots and be able to leave it.
The concept is simple, the market is likely to come back to the point where it started at some point in the future. In practice though you will make a very small percentage compared to the deposit level and may have to leave a position open for extended periods to see mediocre profits. Normal leveraged accounts cannot stand that so anyone trading in the regular sense will need to use a stop loss. Using a stop loss with leverage and a deposit that normal people can afford is a game changer compared to not using a stop loss and trading with a balance that can never get stopped out.
If we think of it in another way a market maker broker that accepts the other side of its clients trades is like a trader that trades without a stop loss and with an unlimited balance. For this reason they have the edge, as they are trading against people that have stops.
Trade without stop loss is crazy strategy, if we have unlimited margin is OK.
I always using stop loss because its as part of our money management. its very importantā¦
You are on right path guysā¦
Keep using stop loss.
Indeed. If you trade with real money, only there you can trade without stoploss because you are not using leverage.
Trading without a stop loss is only something people who have no clue what they are doing engage in. Admitting when you are wrong and walking away is step one in going from an amateur trader to a professional one.
Most of the time I donāt use a stoploss. At least I donāt put one in with my trade. Iāll do it manually if a position seems to break support/resistance prematurely (and goes the wrong way fast), or Iāll include one with my trade if Iām going to work my day job, or just taking a day off and visiting friends and whatnot.
IMO, too many people place their stops too close to their opening position. Most of the time when a trade goes the wrong way for say 40-70 pips, it comes back in a day or two. If I wait it out, I can break even, take a small loss, or even take a small profit.
Granted a lot can vary depending on your brokerage and how many pips youāre aiming to take. My strategy probably wouldnāt work well with a MM that doesnāt allow hedging, or has a FIFO policy. But if you watch your margin levels, and donāt trade lots bigger than your account can handle, itās very much possible to do the bulk of your trading without SLās. The margin and lot sizes are probably the two biggest problems with a lot of traders. They load up on margin by taking on too many trades, or trades that are too big, then start cutting off losing trades quickly because theyāre lacking in equity by committing to too much at one time.
Keep your lot sizes down, and set a max amount of trades that youāll allow yourself to make. That will give you more than enough breathing room when dealing with a trade thatās going south.
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Useful experience. I also adhere to the opinion that SL is for high-volatility trading times or for example when you open several trades and need to close them simultaneously in case price breaks certain level. Last time during trading on UK CPI release, I did put SL because of price high volatility, and even in that case Hotforex closed the trade with 3 pips slippage. It is okay, but doing that manually I would pass by for 10 or more pips loss. In other words use SL when your need to close it faster than doing it manually.
trading without stoploss is suicide, but thinking uot of the box: stop loss is a trigger that end the trade when it reaches a certain price, so i guess you can be a trigger and go ahead and stay there and watch your trade and hope you stop it in time if everything goes against you. lets just say there are more risks involved when you neglect or trade without a stop loss
Has anyone read the book āBeat the Forex Dealerāā¦has some interesting things about stops and their usage 
It is quite disturbing that the choice of using a Stop Loss is an issue in trading. If you can make money CONSISTENTLY withou Stop Lossā¦great. But chances are, the reason someone considers not using SL is because they arent making money and are trying to find a way to not lose or delay the losses. Not using Stop Loss is delaying the inevitable losses from a bad approach to trading.
Just imagine one day you have created several trades without SL and the power gets off and your mobile doesnāt have 3G and itās gonna have a news release. I know they can reach TP but howās about dropped hundreds pip and never reverse?
That has to be factored into your strategy. How many lots you have in play is always a factor. I go with the rule of, 1 lot for every $3.5k of equity, and I recently upgraded to 300:1 leverage, so I have a nice low margin deposit to give me even more breathing room. Right now Iām at $9k, so thatās still no more than 2 lots committed at any given point of time. Secondly, what pairings to you trade? Really volatile GBP pairs can move the wrong way fast, but they can also move back the right way over time. Me having 2 lots open on that leaves me with $1140 on margin. Giving me $7860 free equity.
That trade would have to move almost 400 pips the wrong way before I blow out my account. I have rarely seen a movement like that when looking back at the daily charts for the past decade. They have happened, but very very rarely. That would take an already bad decision at the beginning of a movement to ruin yourself like that.
I personally would never trade more than 1 lot on that pair since itās very risky. I just do some small scalps on it to slowly fatten my account.
It would literally take days for a massive drop like that to occur on a lot of the pairings I trade, and also, I could always just hop in my car and drive a few towns over until I got reception on my phone again.
Hello guys
I opened this thread one and a half years ago. From that moment, I learned not all but something about forex and a very simple strategy. Now I can say, trading without STOPLOSS is crazy, the problem is you have no edge in the market ( we think we stop out because of SL, but actually our account is limited and we need to stop ourselves by SL).
TRADING without STOPLOSS is mad, and it is thought of crazy men, not, crazy traderā¦
Maybe Iām a riskier trader than most, but putting automatic SLās on my positions wouldāve blown out about 40% of my account by now. Iām still new, and I wonāt deny it, I still have to sharpen my skills and work out the kinks, but my methods have paid off so far. So Iāll stick with them until all my profits get blown out.
Trading without stoploss while away from your computer/phone is madness for sure. But I think some people believe itās a total absence of stoploss, while I think itās an absence of an all-the-time-automatic stoploss. When Iām at my computer, I have the freedom to check the forex calendar, cross-reference charts, etc. So if something is moving the wrong way, I have a good idea if itās a matter of technical, fundamental, or sentimental movement. If I believe itās moving the wrong way hard, Iāll end the trade trade there manually. If it appears to be a move that tests support/resistance, Iām more patient/tolerant, and give that position a wider berth before I stop it out. Every time itās tested a level, and Iāve waited, itās recovered, because I factored in those three possibilities.
Had I stopped those out automatically, it wouldāve been several not-so-ideal trades that became losses due to a lack of patience for the market. Since I didnāt stop them out, worst case scenario was taking a 3-7 pip loss. Not-so-worst case scenario was breaking even. Thank-god-god-loves-me scenario was me taking a small profit.
tl;dr Some people think absence of stoploss means being unwilling to take a loss, which is untrue. IMO absence of stoploss means you have a good idea of where a trade is going, and use a more lenient system, as opposed to a more rigid one.
Forex is speculation, itās not something that is set in stone. You have to adapt to market conditions if you want to be profitable at it.
IMHO, trading without a stop loss is a strategy strictly for very advanced and experienced traders, who are not using margin of any kind. It may give flexibility to a new trader to trade without a stop loss on a demo account, but the danger is that you do not in that scenario, develop the psychological toughness that comes through taking losses and taking responsibility for every aspect of your trade management.
Erron
Another method I found out recently would be the use of SOC order (Stop On Close)ā¦it is used in stocks and futures, MT4 platform doesnāt have that kind of order. It uses daily candle closing price. If the daily candle closes below defined stop level then your position is liquidated.
Since itās a daily order you canāt use it on intraday trading, but you can adapt it like I did. Letās say that you are long [email protected] on 1 hour chart and you would put SL @ 102.76ā¦so instead of putting it you manually close your position if the 1 hour candle closes below 102.76. That way you eliminated the sudden spikes that would have taken you out normally if you had regular SL set. On the other hand the risk is if the market slams hard against you and the candle closes way beyond that level, so thatās the risk you would have to takeā¦
Definitely in agreement with you guys here leave it for the more advanced traders, as 4xNewGuy also says: āyou have a good idea of where a trade is going.ā Even the experts have a āgood ideaā but can never be too sure.
In 4xNewGuyās post though, two questions really emerge which help you determine whether no S/L is for you:
- How risk adverse are you?
- Are you away from your computer/phone during the session?
Ultimately, its also about how psychologically strong and determined you are to stick to your trading rules and strategy. Are you going to be swayed by greed or that āI can win it backā mentality? Emotions and psychology are a powerful thing, especially when you are new to trading.