Exactly! Trading without a stop loss can be risky. It mostly leads us to rely on hope rather than strategy.
If I see myself having the tolerance for a bit more risk, I would let it keep going a bit more. If not, I would try and hedge it, maybe I’ll make some profit off of that or break even if I’m lucky.
I’ve been there done that. I’m getting better at closing losers quicker. I’m trying to use market structure to help set those SLs, but also looking at those levels a lot more when actually entering now.
I mean, I wouldn’t dare step away from a short term position. But to give an answer to your question, if my assessment of the situation is that I’m going to be losing a whole lot more by keeping the trade open, I will just close it. Stopping more losses is not a bad idea. Sometimes it’s just inevitable, and I think we’ve all been there.
That’s a great approach 
Using market structure for SLs can really enhance the trading discipline.
It seems like you’ve got a system that works perfectly for you But SLs add an extra layer of security to that. It might be worth experimenting with them to see if it enhances your trading results.
What exactly does this mean, please, @samewise ?
Do you mean that for long trades you’re placing a SL under a recent swing-low, and above a recent swing-high for short trades?
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The toughest problem to have to face in trading is not the stop-loss problem, it is the take-profit problem.
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I was debunking the must have a stop loss set in stone Rubbish 7 years ago in this forum…
Below is a live demonstration of how to apply an indicator… The CCI in this instance as an entry and exit Indicator… RSI, Mom, Williams%R and a few other Oscillator Indicators can be applied using a similar strategy… It’s not that complicated…
Follow the link and a few of the following posts in the thread and some of you may learn a thing or two…
Enjoy…
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Lol, these guys trading without entering a stop-loss must have absolutely bulletproof internet connections: I have high-speed cable, but even that’s been known to flicker for a second, and as countless people can attest to, one day that will be the second you unexpectedly lose a fortune through not entering a “disaster stop” SL automatically with every trade. It only has to happen once. I guess they think it’s “clever,” or something?!
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Lol… Don’t emulate the vast number of new traders that come and go in these forums (and this market)… The success rate is appalling… Don’t follow the herd…
One of the biggest issues for Newbie FX Traders, and a topic that is raised at least once a fortnight (BP Search)… is getting constantly stopped out while trading… It’s the component of risk management that brings new traders undone the most… Death by a thousand cuts…Which indicates to me that the methods and application of using a Stop Loss is fundamentally wrong… flawed… whatever…
So knowing that doing the same thing over and over and expecting a different result is the definition of insanity… Newbies should seek alternatives to the current misguided* FX education…
After a quick look around I now realise most of you are from the Always use a Stop Loss religious sect.
I’m from the broader church of Sure use a Stop…But always look for other alternatives…
Again no disrespect intended to anyone’s opinion…
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While I agree with this I will also say that “the herd” for the most part is inexperienced, trying to use a 1 or 5min chart and/or not respecting any form of money management. So, IMO the herd is probably doing the opposite of what we really think they’re doing.
It’s not the SL that kills accounts, it’s the lack of experience and not knowing where to put it.
Absolutely. Whether you’re implementing a SL, indicators or hedging in your strategy, some sort of money management is key to survival in this business.
Bottom line is to control your losses.
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Yup that’s what I’m doing. Started my demo trading with an SL. And it was like, what’s the right number? Also tried 1:1 of my TP. And couple times bigger than my TP. Then went the no SL route for like 4 months and my account size grew. But then got caught in a couple trades that blew my profits away. I’m still figuring out what works best for me.
Exactly what I experienced. Too tight was usually the problem. Not understanding news and the calendar were some problems.