How many pips should I use as a stop loss? | Forex Factory

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How many pips should I use as a stop loss?

  • #1
  • First Post: May 12, 2005 3:33pm May 12, 2005 3:33pm
On this forum someone posted that a 13 pip loss I believe but not sure, he said was a good indication that you should get out of the trade that was going against you. In general is this a good stop loss point? I have been placing my stops too far away, but at the same time I dont want to place them too close either, btw I am trading on the 5 minute charts. Any suggestions besides "it depends"?
  • #2
  • May 12, 2005 3:53pm May 12, 2005 3:53pm
on the 5 minute charts something like 20-30 pips should do well.
Relax and be happy.
  • #3
  • May 12, 2005 4:16pm May 12, 2005 4:16pm
Quoting merlin
on the 5 minute charts something like 20-30 pips should do well.
most of my personal trades with my own system are entered off of 38 fib ret. i usually place my stop above or below the 50 fib ret. smaller time frames smaller stops and larger time frames larger stops. if you want to be extra conservative enter on 50 fib ret and set stop above or below 62 fib ret. just how i do it, it has worked well for me for many years in many markets. jim
  • #4
  • May 12, 2005 6:39pm May 12, 2005 6:39pm
Quoting james16
most of my personal trades with my own system are entered off of 38 fib ret. i usually place my stop above or below the 50 fib ret. smaller time frames smaller stops and larger time frames larger stops. if you want to be extra conservative enter on 50 fib ret and set stop above or below 62 fib ret. just how i do it, it has worked well for me for many years in many markets. jim
Thank you Jim and Merlin for your help.
  • #5
  • May 12, 2005 8:06pm May 12, 2005 8:06pm
I like putting my stop loss just the other side of the nearest support or resistance level, with position size adjusted to accomodate.

James
  • #6
  • May 13, 2005 9:13am May 13, 2005 9:13am
Quoting Redleg
I like putting my stop loss just the other side of the nearest support or resistance level, with position size adjusted to accomodate.

James
Hey Red how has that worked out for u?
  • #7
  • May 13, 2005 1:23pm May 13, 2005 1:23pm
Quoting bluemonkey
Hey Red how has that worked out for u?
if you trade stops with fib ret combined with support and res levels you are trading like a pro. however what ultimatly seperates the men from the boys is can you consistently do it without moving or playing with them. most cannot. jim
  • #8
  • May 14, 2005 11:21am May 14, 2005 11:21am
Quoting Redleg
I like putting my stop loss just the other side of the nearest support or resistance level, with position size adjusted to accomodate.

James

This I believe to be the only correct answer. There is so much random movement, "noise". in the market that regular flucuations of 20-30+ pips will take out stops placed at a fixed number from the entry without consideration of S/R. Hitting the stops of those trades is what transfers money from your account to your brokers. Placing your stops with consideration of support and resistance will cut down your losses from being stopped out by the market noise.
Forex Trading: The hardest way to make easy money.
  • #9
  • May 14, 2005 12:57pm May 14, 2005 12:57pm
Quoting bluemonkey
Hey Red how has that worked out for u?
It has worked better for me than using a set # of pips as a stop.

James
  • #10
  • May 14, 2005 3:56pm May 14, 2005 3:56pm
Quoting Redleg
I like putting my stop loss just the other side of the nearest support or resistance level, with position size adjusted to accomodate.

James
trading discretionary, this is the best way to go...
Relax and be happy.
  • #11
  • May 14, 2005 9:34pm May 14, 2005 9:34pm
So when you say the nearest support/resistance, are you talking about support/resistance given by pivot points ? In other word, how do you know S/R every day ?
  • #12
  • May 18, 2005 1:51am May 18, 2005 1:51am
Quoting goldenboy75
So when you say the nearest support/resistance, are you talking about support/resistance given by pivot points ? In other word, how do you know S/R every day ?
thats a bit subjective. support and resistance can be the high or low of the week, it could be a pivot point (although less likely), or some other significant point where a lot of trading has taken place. theory says support and resistance are strongest when much trading action has taken place at that price level. the more trading action, the stronger it should be.
Relax and be happy.
  • #13
  • Last Post: Jun 27, 2008 10:02am Jun 27, 2008 10:02am
Your Stop Loss Should Be Dependent On Your Trading Strategies
Cya Prime
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