Real Fx traders do not use stoploss

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Every sane person uses stop losses. They might not enter it into the system, but most good traders I know have at least a mental level where they'll exit a trade.

That level has to be set BEFORE entering a trade, because once you're in it all objectivity tends to go out of the window.

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Use the last swing low, trail it using the 5 EMA (shift 3, closing price), or use the fractal support level...

What I don't get is you putting in a TP but leaving the SL empty. I don't get TP in the first place as it won't allow you to let your winners run...while you voluntarily leave your downside risk open. So basically, you limit your gain but have no plan in terms of losses. That can only end in disaster

Hi, everybody. I'm new here but want to create the new thread with forecast, I've said that needed some vouchers. But I don't know what is this and how can I get them? Could anybody help?

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I dont use stop loss

Here are my views of stop loss

I) By placing stop loss, risk is identified before a trade is taken, a trader knows and understands how much he can afford to lose without getting emotional and irrational for his next subsequent trades entries. Risk management is the most important of any portfolio/account management.

A trader cannot decide how much he can win, the market moves the way it wants, but a trader can limit his losses per day/week/month/time, so that he can move on into a new trade idea.

II) By placing stop loss, the trader can avoid BREAKOUT scenario, a breakout scenario is usually when price hits and move along a certain direction in a very strong trend where RSI crosses 70 and 80 or 30 and 20, and continue to propel on a single direction, and price may not even return to resistance turns support or support turns resistance in near terms in matters or day due to strong fundamental events or steriod.

Breakout often leads account to margin call/stop out most of the times, and the damage is far more than expected in most of the time, take recent EUR/USD breakout a month plus ago from 1.24 into 1.30. If anyone recall it from 1.24 then 1.2650 then 1.2750 then 1.2880 then 1.2940 into 1.31.

III) similar as above, by not placing stop loss, a retail trader is often or not , not a trained hedge trader , does not know accounts management = multiple account trading-> some buy some sell at different entries and stop loss, risk profile into low, middle, high, scalping range and long term etc,, nor does forex options trading for hedging purposes.

Often or not the retail trader will either commit collapsed trading, opening new entries on subsequent price level in the same direction, the real danger would be accompanied with martingale method of increasing lot size at subsequent level, it won't be as bad if the trader can make good grid entries on at least 100-200 pips away on subsequent entries compared to one who does a new entry on few pips away or 20-50 pips away.

Accumulation of red pips in a direction will lead to margin call and account blow even faster.

Its only lucky if the trader is trading within a range bound of M or W in a fibo of 23.6 to 61.8 range, once a breakout across 61.8 and trader made his entry against the flow from 0 to 23.6 and subsequent levels of 50 and 61.8, hes leading his account to be blown even faster.

Trader can be emotional and berserk and loses his cool and decisive thinking/planning/trade plan

IV) A trader may open too many positions in the same account of both long and shorts, resulting in indecisiveness to close which order first, and often or not its likely to be overall negative than positive reading.

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By having stop loss, a trader is not married to a trade, he's neither bullish or bearish bias, but trade accordingly to plan and price, he get out if he is wrong earlier, and minimize his losses and risks, cutting losers shorts.

By having stop loss, if a trader is wrong and did not have a good trading day/week, can re-plan before he enters the market again with the remaining % of his account to fight another day.

A trader must learn to keep his losses small, and ride on his profit, it's ok and alright if a trader keep hitting stop loss, which means the trader must learn to identify even better and sharper entries.

He lacks the skills/knowledge/technique should continue to explore or learn instead of jumping into the market as a Centenarian person who buys a particular shares and hope to see its value rise back one day. But the saying goes, the stronger get stronger, the weaker get weaker, a old thinking trader does not admit he is wrong and until it get extinct. As mentioned, it's in the pattern, if a trader is lucky to trade withing a M or W, if hes red and wrong, he can wait for his position to be break even or green if he has the leverage and patience to do so and it has to be in certain pairs only.

The chances of a trader not using a stop loss is the same as gambling on a direction, but if he keep changing sides and take mere pips from the market through scalping with a poor R R and lack of sniping techniques, his overall losses will be greater than his small fishes that he had farmed.

The trader must respect the rule and high probability of resistance turns support, support turns resistance when the market goes against him and retrace back to former support/resistance near point, he must cut losses at that point given a chance, or be blow away by breakout again.

But it only takes a single breakout to clear the trader's account.

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Price have the tendency to move up and down, it fluctuates in all different time frame and have either bullish/bearish patterns or side way in different timezone and volatility.

Asian, europe and US session all has different volatility, it's important to use stop loss in high volatility or stay out of trade to only use buy sell stops with tight stop. As buy sell stops position often occurs in strong trend of breakout, and unlikely to be against the trend, and it also has to be depend on fundamental aspects and session volatility.

Retailer must learn risk management and account protection, to prevent becoming a prey in this market.

A trader can be wrong 7 times on a mere stops of 10 pips, but once he rides on profits of 3x80 or even 3x50, he already compensate for his earlier losses.

Not marrying a trade
Ride on profits
keep losses small

3 basic rules to dominate.

Learn to snipe instead of spam like machine gun


REAL FOREX TRADER USE STOP LOSS, because he is not GOD, hes just a trader working for a firm/ institutional/ corporation or working for himself otherwise than no stop loss. Any employed trader uses STOP LOSS, otherwise he's just a rogue trader, there are already a few names and top traders being named as rogue trader for losing billions for the banks/company.

Pffewww, a lot of bitching around on this thread! Can’t we stay professional about that?

Anyway, whether or not to place an S.L….. I place two: one physical and one mental one.


My strategy is as follows:

I always place a “just in case” physical hard-S.L. a bit down the road and a warning bell for the mental S.L. The reason for this is twofold. Firstly I have the feeling that market movers, at times, hunt their clients’ S.L.s (like RedLion is saying above) and secondly, from past experience, they often seem to touch them and go back in the original direction again which kind of annoys me. So if my warning bell goes off at least three times it’s a definite and time to close.

I definitely don’t want to wait for a potential turn-around which, again from past experience, 9 out of 10 times doesn’t come.

Good luck to all!

Alex

Idem.


- a mental one (my true SL).

- one physical near my mental (if my finger dont push the buton

Check this out. In a previous post in this thread I mentioned that it would be rare to be stuck in a trade with price going 2,000+ pips against you. Well in preparation for posting my no loss scalping method, I opened a demo account to trade on it for a month or so just to show you. I also mentioned that even if I made an error and price went against me, in due time it would return for a profit. Last week I broke my rules, got in two trades, they went against me. Turns out the market DID go 2,000+ points against me while in these trades. Obviously I stopped trading, and just waited. One I held for over a week. But sure enough, without a stop loss, I made my 1 pip scalps on them.

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The graph appears to be reversed.

I will resume later this week, perhaps for another week. Then post my method. Since it's only a demo, I'm not sticking to any major money management rules, and I might just shoot up the lot size for fun. The only thing I want to offer here is the method, which anybody can adapt to their means.

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I didn't start using stop loss orders until a few months into trading. That's when I realized it was a big mistake not to use one.

The fact is, anything can happen in the forex market, and no one can accurately predict the price movement all the time. Therefore, I believe stop loss orders are a must.

It also pre-defines the maximum loss you're willing to take on a trade. It's an essential part of risk management, and all good traders are the ones who take risk management very seriously.

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sorry but no one cares about 0.01 lot. I have done trading in many different methods before, made several hundred percents and some thousands percent not on 0.01, and some accounts suffered the damage of not having stop loss. The most common problem and obstacle is because of protecting profits, the account is endangered into suffering capital losses subsequently. 0.01 does not shows anything nor prove anything to even a retail trader because the sum is too little to be care about.

If you are trading a scale of $100,000 and your entire wealth is only $200,000. Lets see if your 1 or 10 lot trade based on your current leverage will make u wonder stop loss is required a not compared to a $100 that can say goodbye with.

I ever did a $20 into $1000 and $1000 into $10000 in the past, but i can say that, it has to be dependable on the pairs a trader is trading. If any trader is doing it on north to south pairs like eur/aud, gbp/aud that usually moves 1000 pips without returning and does not respect support/resistance abcd rule without stop loss is pure time bomb.

the de-leveraging type of trading works on certain pairs only, one of the few is AUD/USD which is stucked mainly on a scale of 1000 pips and less and fluctuate more in 400-500pips range.

The previous month eur/usd move from 1.3 into 1.2 and back into 1.2 to 1.3 already showed that waiting is not a recommended way of trading, it prevent new trades, it creates collapsed trading, it also creates many decision making about hedging and trading in the same direction to get into more negative pips.

the best way of trading is to enter the market while price is moving with a trend and liquidity and that's how top traders make money they enters only when price is moved and usually in 100 pips move++.