Trading without a stop loss

Beginner Questions
1

Hi guys! Do any of you trade without a stop loss? Is this doable?

2

I don’t day-trade. The whole set-up of day-trading is an inverted r:r in my opinion.

But if you’re talking about long-term trading, I find that many of my long-term trades show a TA deterioration before the pre-set stop is triggered, few are triggered before I’m aware of what’s going on (my pre-set stops are currently 2 x ATR20 from entry) so - in theory - I could eliminate pre-set stops.

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3

Suicide: wave goodbye to your bankroll not a matter of if; it’s a matter of when. Use fixed, Trailing, or %% of acct, . .whatever pick one and use it, unless you’re one of those traders that has to learn everything the hard way

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4

To close a trade in loss takes great discipline, use of stops remove this emotional trauma and protects your account balance.

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5

I would suggest that there are two core ways in which stop losses are utilised:

  • as an integral component of your trading strategy, whereby your stop is intended and expected to be hit under pre-defined conditions. For example, as a calculated loss containment level when things go wrong (such as a “set and forget” basis) or as a trend profit optimisation technique such as trailing stops, etc. These types of stoploss usage are more appropriate, even essential, in short term trading.

  • as a “damage limitation” stop, which is not expected to be hit except in extreme and unexpected circumstances. These types of stops are more relevant to longer-term position trades like @tommor describes, where, under normal trading conditions, the trade exit is most likely to be determined by, as @tommor so eloquently put it, “a TA deterioration” or reversal signal.

Since these distant “damage limitation”, or “air bag” stoplosses very rarely get in the way of any normal price evolvement when a trade is open, I see no reason to ever trade without at least this kind of stop. Afterall, a loss of a few hundred pips may hurt, should a such a dramatic move ever occur while you have an open trade - but at least you will still have an account if your position size is appropriate in scale! :wink: D

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6

I did that one night, woke up the next morning to find my free margin hanging on by a few cents, my account dropped by 80% on that one trade. I thought I’d just wait for the margin call instead of closing the trade, thankfully it reversed into profit and hit the sl I placed later on in the morning. So I wouldnt advice trading without a SL. Dont set it too wide, don’t set it too tight.

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7

For me, trading without SL is not possible actually! Know why? Because my trading plan doesn’t support this way of trading.

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8

I trade without stop losses while I’m awake and monitoring my positions closely. Sleeping without stop losses though? LOL FAT CHANCE.

Black swan events are extremely rare, but it only takes one to completely ruin your life.

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9

If you are looking for a margin call, then yeah, please, go ahead! :slight_smile:

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10

No Stop Loss. please dont do that. I just feel the pain cause by forget to put stop loss entry at eurgbp pair sell at 0.88745 its blow up my account just in 12 hour. I am so busy soo i forget to take a look on the chart. when i check it out. i am already MC. :disappointed_relieved:

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11

You can use a hedge trade instead of a stop loss but that’s probably not a technique for novices.

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12

Hey T 100% in agreement, but a trader would need size to write an Option Contract, and then it would be for a long term trade. Also even at that, you would still want a technical stop because most long term trades are Trend, and when the trend ends, it’s no longer your friend.

The Ever Option Writing At Time Viper

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13

Some people trade without using SL and they do so successful. Those people are also, usually at least, traders with large experience. If you are a newbie I recommend using SL.

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14

You are absolutely wrong. Name them. You can’t because there is none. No experienced trader would tell you not to use some kind of stop loss.
This is a newbie’s forum. and this ridiculous post does not help them
Gp

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15

I keep hearing some experienced traders don’t use a SL. I always set a SL and I never widen it but I have closed trades while price was only half-way to the stop, due to deteriorating TA.

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16

In my 2nd day of trading, I faced same issue! But luckily then I was in a demo account, after words, I started to use the SL permanently.

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17

Excellent. ALWAYS USE A STOP LOSS It can be fixed, trailing, % of capital, based on potential take profit. Sometimes conditions change and the stop loss has to be adjusted. Currency pairs fluctuate.

You can not count systems, strategies, indicators, RR’s, tech and/or fund analysis. The only thing you have absolute control of is RISK

This is so important for all new traders to understand and trade by. On this forum you will find:

some traders parading their opinions as facts. an example is “This is the most powerful strategy” when they should say " I found this to be the most powerful strategy"; “This is the best book, course or trader on forex;” " make sure you understand the difference.

Some have no idea what they’re talking about when they answer your question with something totally irrelevant to your question. In some cases they are showing off or have a little bit of knowledge but trying to be helpful

Most traders questions and answers in the forums are meant to help, expand and improve our knowledge but some intentional or not are meant to discourage, and make you fail . I belong to a group of traders who are full time and have done a lot of trading over the years. I can tell you that the things we discuss are much difference than what’s discussed here.in the beginners forum and rightly so. You have to walk before you can run.

If you are not sure if what your reading is accurate. First decide if it’s fact or opinion. If you can’t decide; try this if 9 traders tell you a fire is coming from the left so turn right and one tells you it’s coming from the right so turn left; you may want to try right first. Make your decisions on Facts; Options and Least of the Evils. You can always close your stop early if conditions change without jeopardizing your trading account; however no stop loss and a change of conditions can bring your trading account to a margin call
Gp

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18

Trading without a stop loss is like skydiving without a reserve.
Ask your self;
What is the first rule of trading?
Answer;
Protech your capital!

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19

Very smart answer! I agree with you; risk reward ratio is very much important consideration.

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20

Would that be the same as opening a ‘pending’ sell AND buy order at the same time, for the same pair?

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