When I first started trading, I would set a SL for every single trade that was around 1:2 or 1:3 risk to reward ratio. However, now that I am looking at my trades almost every day, I'll either not set a SL or set it for 500 pips.
Ignored
500 pips is a lot, how do you deal with that kind of loss psychologically? Can you wait that much in the hopes it will reverse?
{quote} 500 pips is a lot, how do you deal with that kind of loss psychologically? Can you wait that much in the hopes it will reverse?
Ignored
By saying that he meant the same, now he doesn't set a stop loss. There is no point in setting a stop loss as big as 500 pips. I think stop loss is good if & only if it is placed in such an area where if it is hit, the market should continue in that direction else you will see it being taken & then frustratingly , the market moving in the direction you initially predicted, more often.
{quote} By saying that he meant the same, now he doesn't set a stop loss. There is no point in setting a stop loss as big as 500 pips. I think stop loss is good if & only if it is placed in such an area where if it is hit, the market should continue in that direction else you will see it being taken & then frustratingly , the market moving in the direction you initially predicted, more often.
Ignored
Yes I agree with you. Stop loss is not a problem. Placing stop loss in the right area is the problem. Many place SL by counting pips not by seeing levels. Again it depends on the type of trading style.
It really depends on many factors, if you're running a big account, it needs to be a point in which you will need to assume the loss and get out of the trade.
