you’ll regret it if you’ve chosen.so basically i don’t stop loss ,of course ,find a way that won’t blow your ac.
since i don’t stop loss ,my TP tend to be bigger time frame ’ s overbuy area,because i like to tp at a possible highest point , retracement make me feel bad ,just that simple.
You need to protect your account one way or another, whether it’s with a SL or a hedge position. If you don’t you’re asking for trouble, unless you’re watching the charts 24/5.
I simply put my SL (sometimes hedge in case price briefly breaks opposite of the trend) somewhere past the recent swing on the weekly or daily chart.
If price is in a channel or somewhere near a major SR area then I’ll go just beyond those areas.
Here’s an example of a trade I opened today, hoping I got into a pullback on the main downtrend:
My SL is beyond the swing (I hope it’s a swing, if not price will continue up), as well as what I see is a SR area. I would have liked to put my SL above that channel, but then I would either need to reduce my position size or risk too much.
I don’t usually use a TP, I will either close the position after a surge in price, or just manually trail my SL.
usually i will just set R/R ratio is set up my SL and TP accordingly. Most traders tend to go for 1:2 ratio.
Rule of thumb: Use it when you’re trading, rather than investing for the long term. This is a tool for trading. In the long run, short-term volatility doesn’t affect long-term investors, thus they don’t employ stop-loss orders.
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I use a combination of Bollinger, Keltner and Donchien for entry and stop loss.
For longs, top band that is hit by price first is entry and then the stops are the higest of the lowest band of the 3 indicators.
For shorts it’s the other way around. I don’t use profit taking, but trail the stops as the bands move in the direction og the trend.
Stop loss are not a scam!! They protect your Capital, so you can stay in the game and keep taking menaingful positions.
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nobody mentioned fibo levels with S/R combination and price action easy…o dont rely on ATR