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Movements of Forex, and using a stop loss

  • #1
  • First Post: Nov 28, 2006 5:29am Nov 28, 2006 5:29am
I dicovered today, I advise again, putting a stop loss can make you loose more money then it would save... and stop loss are usually not guaranteed if the market moves to steeply for all forex companies that I know.

Why is the market not moving nice and smooth ?

Because of stop losses.

Each break of the trend is a stop loss that was taken.

Each barrier is a stop loss.

I usually never put a stop loss, and it worked fine...

Recently i put some stop losses and i ve been caught everytime, and then the market spiked in my way... =(

Am I wrong ?

happy trading :
  • #2
  • Nov 28, 2006 5:55am Nov 28, 2006 5:55am
But stops should work as protection against more losses. No clear rules about stops is what makes most people lose money i believe. They wait..and a little more...AND itīs to late.
  • #3
  • Nov 28, 2006 6:05am Nov 28, 2006 6:05am
My dear friend,

I do not use stop-loss or limit... why? because as you said, I discovered too that they usually caused me more losses than if I had not used them at all!

I am a stricly TREND TRADER, and, since my personal point of view, if you trade the trend, using stop-loss or limit are barriers to success.

But if you are a scalper, a very short term trader (comparing against my 3-30 days trades), or a counter-trend trader, YOU MUST USE STOP-LOSS AND LIMIT.

You are not wrong pal, trust me!
  • #4
  • Nov 28, 2006 6:51am Nov 28, 2006 6:51am
I disagree you should always use a stop loss,it would be foolish to let one major event in the world wipe all your hard earnt cash.

As for limits i do agree I prefer to move my stops up.
It is really about knowing your method of trading well and excepting that you will be stopped out sometimes, which is their to protect your risk reward.
  • #5
  • Nov 28, 2006 7:05am Nov 28, 2006 7:05am
For me, the probabilities of being wiped out due to a major catastrophe is BY FAR lower than being stopped by the well-known phenomena: "stop hunting"
  • #6
  • Nov 28, 2006 7:13am Nov 28, 2006 7:13am
Interesting, Do you have no stop loss, or do you keep one to yourself? Meaning, That you have one in mind, but do not let the Broker know in advance?



Quoting iiivb
For me, the probabilities of being wiped out due to a major catastrophe is BY FAR lower than being stopped by the well-known phenomena: "stop hunting"
  • #7
  • Nov 28, 2006 7:14am Nov 28, 2006 7:14am
Quoting iiivb
For me, the probabilities of being wiped out due to a major catastrophe is BY FAR lower than being stopped by the well-known phenomena: "stop hunting"
stop loss = must

Are all your trades 100% profitable? no. So, you are closing a loosing trade, right? so you do have a stop for yout losses, but you dont put an order because of "broker fishing". Thats ok (barely, but ok)... because:

very few people can consistently execute stop loss manually. But noone can claim that such people dont exist. thumbs up if youre one of those.

psycology poeple... dont forget it and dont deminish its role...
  • #8
  • Nov 28, 2006 7:17am Nov 28, 2006 7:17am
Mmm... not always... for example... I consider that 1.9375 is the key level for the GBPUSD uptrend... if it breaks it... i will close my trades no matter what... but... as market develops... this key level is changing everyday...

As you wisely said... I DO NOT LET MY BORKER KNOW MY STOPLOSS in advance... why? because i can manually close it... and if i let my stop loss viewable... I do not want to tempt commercial banks to take my money away!
  • #9
  • Nov 28, 2006 7:18am Nov 28, 2006 7:18am
Stop-Loss=must? yes... but...

if you are a trend trader... you CAN leave your trades TRUSTING in the trend... the only friend in forex by the way...

Of course i have closed bad trades... -150 or -250 pips is ok for me.. why? because i make the other half of good trades between 500-1500 pip profit...
  • #10
  • Nov 28, 2006 7:23am Nov 28, 2006 7:23am
Quoting iiivb
... I consider that 1.9375 is the key level for the GBPUSD uptrend... if it breaks it... i will close my trades no matter what....
do you watch your trade 24/7?

what if the level is broken during your off market hours? will you wait for price to come back to that level? when is that gonna happen? or will you close @ first price you see? if so, why take loss "as much as it it" when you turn your monitor on, and why not limit the loss?
  • #11
  • Nov 28, 2006 7:25am Nov 28, 2006 7:25am
I decide to open or close any trade at gmt midnight... because this is the hour of less volatility... so after all the madness has gone... i take my decision... if it broke the key level... but suddenly spikes back... i let the trade run... if it broke the level and did not recover.. i close the trade.
  • #12
  • Edited 7:45am Nov 28, 2006 7:25am | Edited 7:45am
Have you all ever thought that stops are good, but you just don't know where to place them? There's a concept.

{Text removed, See rule #1}
  • #13
  • Nov 28, 2006 7:26am Nov 28, 2006 7:26am
Respect pls pal
  • #14
  • Nov 28, 2006 7:26am Nov 28, 2006 7:26am
Quoting iiivb
if you are a trend trader... you CAN leave your trades TRUSTING in the trend...
I am also trend trader and dont trade intraday, but trust? hmmm... you cannot trust the trend. Of course, I trust trend more than by broker , but still, trust is not the best thing to do talking about anything on market.

The only thing to believe, and not trust on markets is the discipline. period
  • #15
  • Nov 28, 2006 7:31am Nov 28, 2006 7:31am
I agree.. u know what? maybe i speak so confident because of my results... having no stop loss... trading only the trend has brought me nice trades... so that is why i tell about my technique... maybe some wont agree... but for me has meant profits... so i share it with u all
  • #16
  • Nov 28, 2006 7:34am Nov 28, 2006 7:34am
Quoting twinchell
Have you all ever thought that stops are good, but you just don't know where to place them? There's a concept. You don't see me starting threads that news trading sucks, when I know nothing about it, do you? You should educate yourself instead of "uneducate" others with this crap.
Stop aren't just good - they are essential. forget making money - if you want to survive, one has to use stops. IMHO.
  • #17
  • Nov 28, 2006 7:36am Nov 28, 2006 7:36am
Quoting iiivb
I agree.. u know what? maybe i speak so confident because of my results... having no stop loss... trading only the trend has brought me nice trades... so that is why i tell about my technique... maybe some wont agree... but for me has meant profits... so i share it with u all
were just talking pal, no problems. But just out of curiosity - whats your experience on FX? how long did you last for far without stops?
  • #18
  • Nov 28, 2006 7:37am Nov 28, 2006 7:37am
Quoting Rezo
I Of course, I trust trend more than by broker , but still, [/b]
hehe..its better to trust ur broker LOL..cos almost 95% of the time..he will WIN and at the right Track..

For me,Stop loss or No stop Loss,it depend on ur style..
  • #19
  • Nov 28, 2006 7:39am Nov 28, 2006 7:39am
I am cool buddy! I just did not like that dude saying this "thread is crap" or something... that is against the forum rules.

Actually today i closed a usdjpy short of one week without stop loss (+130 pips profit)... it depends on the trend strenght... some days i close it 24 hours later.. with losses... sometimes i close it 1 week after.. with profits

Usually losses show up before 24 hours... so I know that that time is the critical one...

I have one year trading... last week i was 4th place on forex solution's competition... i made +200% profit last week.. http://www.forexworldseries.com/leaderboard.html ( i am the 4th place on the section "week 4")
  • #20
  • Nov 28, 2006 7:43am Nov 28, 2006 7:43am
Quoting shahfx
hehe..its better to trust ur broker LOL..cos almost 95% of the time..he will WIN and at the right Track..

For me,Stop loss or No stop Loss,it depend on ur style..
Look, when market conditions are abnormal, and/or there is higher than usual activity on the market, brokers - especially retail brokers are at higher risk to make or lose money. Thats when most traders "suspect" of fishing, and thats when some brokers go for fishing.

so, trend, broker... trust me when I tell you - dont trust anyone

cheers
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