Do you use stoploss?

1. Stop loss is a risk management tool that allows traders to limit their potential losses on a trade by setting a certain level at which the trade will be automatically closed. Many traders do use stop loss in their trading strategy as it help them control their risk.
2. Traders use stop loss to limit potential losses and protect their trading capital. They help traders to set a specific point at which they will exit a trade, regardless of whether the market is moving in their favor or not. Some traders may choose not to use stop loss, as they may have a different risk management strategy or they may prefer to manually monitor their trades and close them manually.
3. The number of pips used for stop loss can vary depending on the trader's risk appetite and trading strategy. Some traders may use a wide stop loss of 100 pips or more, while others may use a tighter stop loss of 20-30 pips. The choice depends on the trader's risk management strategy and the volatility of the market.

It's important to note that stop loss is not a guarantee for success and it's not suitable for all trading styles. Traders should use stop loss as part of their risk management strategy and should always consider it in conjunction with other risk management tools.

Stop loss should be used right 10 to 15 pips away from the buying position. Traders mostly skip using stop losses in their trading, which leads them to fail ultimately from the market. So, be careful about using stop loss in your trades.

Yes, as a new trader we should use stoploss to safe ourselves from loss to some extent!

If you have a small account, heck, even with a large account, I can almost guarantee there is A point of no return and if you are charting and planning your trade correctly, you know what that point is. But I will say if I had a LARGE account and I mean LARGE then I wouldnt care as much because the chances of the drawdown being that exponential would have to be catastrophic.

Yupp, I always use stop loss. I think the number of pips depends on the risk and reward ratio and everyone has different risk tolerance. For example if you set a 1:2 ratio, that means you are willing to risk 1 unit of currency to potentially gain 2 units of currency.

if you always sit next to the trading platform, so it is nearly not necessary to use stoploss.

Umm, I have to disagree on this. Even the most experienced and skilled traders can fall to sudden market movements if they don't have a stop loss order in place. It’s better to be safe imo.

1. Yes I do trade with stop loss. ALWAYS!
2. Famous last words: ”I’ll close when it comes back to my entry”
Stop loss is your safety net. Sometimes, prices can go past a certain level very quickly and this move can be very huge - especially during news. In cases where there are huge moves, you can even experience a slippage when closing a trade with a stop loss. In such a case, if the price goes against you, it will damage your portfolio significantly.

Having a stop loss is the last line of defence for your account. Having a specific level to cut your loss is not enough. It can lead to you holding on to a losing trade and you hope that the trade goes back in your favour again, or even turning this trade into a long-term trade.

Consider this scenario: You’re risking 1% or $100 to make $300, with a risk to reward ratio of 3 without the use of a stop loss. You know where you should cut your trade - in this instance at $10. When price hits $10, you see that there is a chance of price reversing and going in your favour. You held onto the trade and you see the trade going from -$100 to $150. You then tell yourself that you will close the trade when it comes back to your original “Stop loss” at -$100. You see the trade going from -$150 to -$300, losing 3x more than intended. How many of you can relate to this scenario? This was what I faced earlier in my trading career, using “hope” as a strategy.

Sometimes, price will tap into your stop loss, taking you out of the trade and then go in your favour. This is common and it’s known as a stop hunt. The only way you can control this is to add a padding to your stop loss. For example, if you want to place your stop loss at $10, when you take a long, add some padding to it and place your stop loss at $9. Yes this will diminish your reward, but at least you will be in a winning trade rather than a losing one.

3. I place my stop loss at local swing highs/lows. I don't do fixed pip size SL or TP

Hope it helps!

Think of trading as a dip in the ocean and a stop loss as a protective barrier. Just like how swimmers may encounter sharks in the water, traders may face unexpected market movements that can result in significant losses. While sharks may not always attack, it's crucial to have a safety net in place to protect oneself from potential harm. A stop loss serves as that barrier, preventing a single trade from causing irreparable damage to the entire account. Remember, stop loss is not just for one trade, but for the overall health of the account.

I use 5min timeframe and 15 pip stoploss and if/when my trade move in my direction I move stoploss to a small win so that if my trade reverses I dont risk any money.

Yeah, I use it, but you know, it depends on the situation. For instance, if I require to open long or short position after a thorough analysis, based on some news release or indicators, then I can do it without any stop loss or take profit. Apparently, couple of time my analysis was wrong and actually the price quickly changed its direction. The only thing I had to do is to close the order with minimal loss.
I lost certain sum of money, but only due to a quick reaction. It might be far bigger if I was too slow.
If you are a total rookies, then it's mandatory for you to use sl and tp. The matter is to calculate the risk/reward ratio, start with 1:3.

Absolutely! I do utilize it, although it's highly situational. Let's say I've conducted a comprehensive analysis, taking into account various news releases and indicators. In those cases, I sometimes opt to open long or short positions without implementing specific stop loss or take profit levels. Admittedly, there have been instances where my analysis didn't pan out as expected, and the price swiftly changed its course. However, I promptly respond by closing the order with minimal losses.
In this way, I approach the market with flexibility, acknowledging the occasional unpredictability while minimizing potential downsides.

I use hidden stop loss (a condition which is included in my bot's trading logic written in python) which can't be seen by my broker (as usual stop order).

Re the hidden stop loss (and I have two typically in my EA - hard as a stop loss order and soft as EA controlled). How do you account for potential disconnection of your bot from your trading account API? I don't like the risk.

VPS may minimize the risk.

I also use a broker visible SL which is larger than my hidden (virtual) SL.
However, the real reason I am posting here is to get your thoughts on what do between 5pm and 6pm NY time
if you are holding onto a position.
I tend to remove the SL shortly before 5pm because the spread may become very large and easily knock you out of a trade
(side note: this might depend on the broker - I did get knocked out while using a shady offshore broker but hasn't happened yet with oanda).
I reenable the 2 SLs around 6pm.
From a risk mgmt perspective this may not be good enough.
I wonder what happens if unscheduled news is released in the 5 to 6pm interval and the FX pair reacts violently?
Without a SL afterhours are you exposed to unlimited risk?

The use of a stop loss is crucial because often, when you believe you haven't incurred significant losses, you fail to recognize the challenges associated with recovering from drawdowns.

Yep, I use a stop loss strategy. It's an essential tool for managing risk in my trading approach. By setting a predetermined price at which I'm willing to exit a trade, I can limit potential losses and protect my capital.

Yeah I do and I'm sure many of us use it as well.
I don't know how much experience you should have not to using stop-loss, and how much confidence in the position you shoudld have as well.
SL and TP are the msot classical ways to mitigate risks on the market, it helps you not only keep your position safe even if the price harshly unfolds, but also not to be worried about it. It's another point for trading psychology, when you know that the position will be closed by SL.

I use it. No use in hiding it IMO, unless you're a gigantic whale in the market, brokers won't care about your stop-loss.

yes.

Where .5% is equal to 1/2 of daily atr. That is my stop loss size.

Simply to be able to ride the draw down and if it does not atleast allow the minimum loss for the time.

If one doesn't use high leverage, you could cost average but, it requires such a high level of discipline.