Holding on to Losses | Forex Factory

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Holding on to Losses

  • #1
  • First Post: Sep 3, 2013 7:30am Sep 3, 2013 7:30am
This is something i seem to be having an issue with. I don't use stop losses, but maybe I should start using them. Have any of you faced the same problem? I'd love to hear possible solutions, suggestions as well as past experiences.
  • #2
  • Sep 3, 2013 8:42am Sep 3, 2013 8:42am
You should at least set some stop loss on opening a position, just incase the price rapidly goes against you straight away.

That said, I'm the opposite extreme, such that I often end up closing a position a considerable distance before my SL.
Then, quite often, the trade moves in the direction of my trade.

Lots to learn!
  • #3
  • Sep 3, 2013 1:15pm Sep 3, 2013 1:15pm
Retail traders as a whole hold on to losses much longer than they let winners ride. Try opening a separate acct which you let your winners ride and cutting losers short. See which is more profitable.
  • #4
  • Sep 3, 2013 1:58pm Sep 3, 2013 1:58pm
Quoting KidSupreme
This is something i seem to be having an issue with. I don't use stop losses, but maybe I should start using them. Have any of you faced the same problem? I'd love to hear possible solutions, suggestions as well as past experiences.
It would be wise for you to impliment Stop Strategy in your future tradings. The stop isn't there to protect your position but should be put in place to protect you account from unexpected market behaviors (i.e. unexpected 200 pip move against your position).


Remember, the game is to Protect what you Gain. Utilizing a 'no-stop loss strategy" is a sure-fire way to lose everything in the blink of an eye.
  • #5
  • Sep 3, 2013 2:35pm Sep 3, 2013 2:35pm
Hold on to losses... a single word: Don't. Erm... two words.
  • #6
  • Sep 3, 2013 5:46pm Sep 3, 2013 5:46pm
Quoting EmeraldEyes
Retail traders as a whole hold on to losses much longer than they let winners ride. Try opening a separate acct which you let your winners ride and cutting losers short. See which is more profitable.
Trader888's advice a few years back Of course this only valid advice assuming high degree of discretion is used. Something I'm very against. High discretion could easily blur into having no trade plan. Only a very exceptional and experienced individual will make money consistently without a well defined trade plan. Most individuals without a sound trade plan have no idea what they're doing, hence they're gambling. That said, I don't consider myself exceptionally gifted. That's why I like systematic approaches where discretion is kept as minimal as possible. Every entry should have pre-planned exits be it TP, or SL. More complex strategies should have pre-defined conditions on TP/SL parameters modification.
"To hold, you must first open your hand. Let go." - Lao Tzu
  • #7
  • Sep 3, 2013 6:46pm Sep 3, 2013 6:46pm
Quoting KidSupreme
This is something i seem to be having an issue with. I don't use stop losses, but maybe I should start using them. Have any of you faced the same problem? I'd love to hear possible solutions, suggestions as well as past experiences.
Stop loss is the only thing that differs us traders from slaves.
Think about it.
Sure, no need to use SL if u are watching closely at your monitor, but lets suppose u wanna take a leak, and maybe No2. which takes some while, and lets say something happens which makes the price go away from needed direction, in those 5 mins u can lose all u got and all for which you have worked so hard ...just because u didnt wanna fiddle with 2 click simple computer program order. ~ That is called lack of discipline and leads to egoism and further losses.
2nd and more important, SL defines your trades, the goal of the trader is to utilize his SL in a way that he enters resists/supports and depending of the strength of the s/r lines he puts his SL to a zone which he thinks he can and SHOULD risk so that potential loss never exceeds certain amount of $ or % of the account.
Last week and this I had 4 SLs triggered, with 700$ dent on my account. If I let them ride, Id have around 10k minus now...
  • #8
  • Sep 3, 2013 6:54pm Sep 3, 2013 6:54pm
Will you drive a car without brakes? I hope not.
Fear prevent possibilities, and so does Greed
  • #9
  • Sep 3, 2013 7:06pm Sep 3, 2013 7:06pm
Quoting KidSupreme
This is something i seem to be having an issue with. I don't use stop losses, but maybe I should start using them. Have any of you faced the same problem? I'd love to hear possible solutions, suggestions as well as past experiences.
I am also amazed how people go trading forex or TRADING in general without reading dow theory and douglases "trading in zone"...Simply amazed. Its like u want to solve a differential equation of 2nd degree and you still havent learned numbers (1,2,3...).
Had to be blunt ~ but almost every read about trading suggests SL (mildly said "suggests", IT IS A MUST HAVE), only ppl who dont need to use stoplosses are big guys with unlimited funds. SL is our only defense against them...
  • #10
  • Sep 3, 2013 8:59pm Sep 3, 2013 8:59pm
Stop Loss may be a defense against the big boys, but a trader's account can only put up with so much defenses before collapsing.
  • #11
  • Sep 3, 2013 10:16pm Sep 3, 2013 10:16pm
Yes, it is mental problem. It is a fear feeling that i used to have when setting SL... thus i internally admit that my trade can be wrong ---
the trade set-up is nothing than just probability. Thing will go wrong when I fear it most.

Without SL, I have no plan - it is that simple!
  • #12
  • Sep 4, 2013 6:33am Sep 4, 2013 6:33am
Quoting trafx2013
Yes, it is mental problem. It is a fear feeling that i used to have when setting SL... thus i internally admit that my trade can be wrong --- the trade set-up is nothing than just probability. Thing will go wrong when I fear it most. Without SL, I have no plan - it is that simple!
  • #13
  • Sep 4, 2013 6:52am Sep 4, 2013 6:52am
Try to think about long term, not short term

You may be Lucky once, twice or more for days/weeks...and then within a single day you'll lose everything.

Just use stop loss, admit you are wrong and move on to the next trade....it's a business with endless opportunities
COT: The precious data ignored
  • #14
  • Sep 4, 2013 8:17am Sep 4, 2013 8:17am
Quoting kuroro001
Try to think about long term, not short term You may be Lucky once, twice or more for days/weeks...and then within a single day you'll lose everything. Just use stop loss, admit you are wrong and move on to the next trade....it's a business with endless opportunities
Good Advice here.
  • #15
  • Sep 4, 2013 9:59am Sep 4, 2013 9:59am
When thinking about where to place a stop, it is important to know that some currency pairs have larger intraday ranges than others. When placing a stop, you should consider the volatility of the currency pair.
  • #16
  • Sep 4, 2013 11:41am Sep 4, 2013 11:41am
Stop loss is a predefined stop. Whether you are going to use it would be determined by your trading style. Not all styles of trading would need a stoploss.
  • #17
  • Last Post: Sep 4, 2013 12:43pm Sep 4, 2013 12:43pm
To be consistent:

1. Objectively identify your trading system(edge)
2. Predefine the risk of every trade (stop loss)
3. Completely accept the risk and be willing to let go of any trade
4. Act on your trading system or edge without reservation or hesitation
5. Pay yourself as the market makes money available to you(take profit)
6. Continually monitor your susceptibility for making errors
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