Trading without stop loss | Page 2 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

successful trader without stop loss? 111 replies

Stop Loss vs. Hidden Stop Loss 26 replies

Trading without a stop loss! 142 replies

Trading without stop loss? 20 replies

Looking for dealer without Stop Loss gap problem 3 replies

Attachments: Trading without stop loss
Exit Attachments

Trading without stop loss

  • #21
  • Jan 18, 2015 12:17pm Jan 18, 2015 12:17pm
I would also never trade without a stop loss, unless it's a long-term position, which is more common with stocks than with Forex pairs.

Statistically, it's a very rare event that the price would stop exactly at your stop loss and then go up again. It's more common when:
(a) it just falls down, making it worth to have stopped the trade;
(b) it doesn't reach your stop loss antyime, and in case of a rising market you can move your stop loss and profit from it;
(c) it falls down but it goes up again, so it would be good to stop it and buy again when the price achives your previous stop loss value (but this depend on your strategy).

To sum it up, it's better to use stop losses.
  • #22
  • Jan 19, 2015 8:29am Jan 19, 2015 8:29am
Quoting F0r3xPHD
...To sum it up, it's better to use stop losses.
I agree, but be aware that a stop loss isn't enough protection by itself. My friends account was damaged when the Swissy gapped over 1000 pips below his stop loss. It's just a fact that if price gaps far below the stop, a stop loss cannot execute as there are no trades at that stop loss price. The only reason his account wasn't destroyed was he trades with very low leverage. In the end, high leverage is much more likely to blow your account than make you rich. My opinion is one should always use a stop loss. Make it as wide as you want to avoid undesired stop outs. Try to always exit a trade manually if it turns bad, rather than depend on the stop to take you out of a bad trade, and trade very low leverage so that even a "Black Swan" event like the Swissy move can't wipe out your account.
  • #23
  • Jan 26, 2015 8:47am Jan 26, 2015 8:47am
Quoting mordin
{quote} This. I was thinking the same examples. Stopless can save you from things like that.
Yup..and that's one of the reasons so many traders folded like a cheap bag of tricks..
  • #24
  • Jan 26, 2015 5:31pm Jan 26, 2015 5:31pm
Yeah I wouldn't want to trade without a s/l. However, I will admit to sometimes moving my s/l a bit if I have an open trade that I'm letting run and a big news item is coming out. I don't feel like getting stopped out of my trade by some random big news event wick that immediately goes back down like 10 minutes later.
  • #25
  • Jan 29, 2015 10:38am Jan 29, 2015 10:38am
You could try a trailing S/L, though I have to point out that for some reason it works better on my tradersway account and fxcm than it ever did on alpari..
  • #26
  • Feb 1, 2015 12:13pm Feb 1, 2015 12:13pm
hedge
  • #27
  • Feb 1, 2015 5:08pm Feb 1, 2015 5:08pm
If I remember correctly there was a trader in market wizards that didn't use sl. He was trading large sums and he considered that any pending order could have influenced the direction of the market short term. For him it was like playing poker, he considered that using pending orders would just give more information about his strategy to the adversary, in this case the banks.
  • #28
  • Feb 1, 2015 7:50pm Feb 1, 2015 7:50pm
Quoting bhardc1
However can you use limit orders to carry out the same function as S/L as in matched or hedge position trading.
Of course you could do that, but what would be the point? Stuck in a hedge with net negative swap everyday, then to exit the hedge pay more spreads/commissions.
  • #29
  • Feb 1, 2015 11:21pm Feb 1, 2015 11:21pm
In the age of stop-hunting, trading without a stoploss is the ONLY way!! For some many times, prices have rebounded to profit AFTER they have taken out my positions. At least without stop-loss, they won't know how far wide they need to spread those prices.
Make your losses in demo. Earn your profits live.
  • #30
  • Feb 2, 2015 4:10am Feb 2, 2015 4:10am
I think that trading without a stop loss is very dangerous - even if you have a mental stop loss, your psychology will take over and somehow "convince" you to stay in the trade longer than originally planned.

You can make clear decisions before you are committed to a trade, but once you, money clouds your judgement.
  • #31
  • Feb 2, 2015 7:51am Feb 2, 2015 7:51am
I am very new to Forex and have been watching a lot of videos on how to trade.. Out of all the videos I have watched only one or two people say don't trade with a stop loss because it is 'useless'...

I am trading on a demo account and have not added any S/L so far, but gonna see how it goes.
Up and coming champion Pip collector.
  • #32
  • Feb 2, 2015 12:32pm Feb 2, 2015 12:32pm
Sure but trading without S/L is just plain nuts..but let us know how your demo experiment turns out..good luck.
  • #33
  • Feb 2, 2015 12:39pm Feb 2, 2015 12:39pm
Quoting Forexia
In the age of stop-hunting, trading without a stoploss is the ONLY way!! For some many times, prices have rebounded to profit AFTER they have taken out my positions. At least without stop-loss, they won't know how far wide they need to spread those prices.
LOL
  • #34
  • Feb 5, 2015 2:42pm Feb 5, 2015 2:42pm
There is another alternative to a stop loss and that is a hedge. ie if you intended SL was 10 pips you place a pending trade in at - 10 pips.
It will limit your loss while still keeping you in the trade. The trick is how to manage your hedge once it is triggered.
  • #35
  • Feb 6, 2015 2:21am Feb 6, 2015 2:21am
I've traded for a couple of years now but still the idea of trading with out sl is scaring the shit of me, especially with events such as the CHF.
  • #36
  • Feb 10, 2015 1:17pm Feb 10, 2015 1:17pm
LOL, I know..quite a few brokers got kicked in the pants, thanks to the CHF volatility..
  • #37
  • Feb 10, 2015 1:28pm Feb 10, 2015 1:28pm
I might agree, though, that a wider stop loss may be in order than a very tight one... if you were with a longer open trade. If you are scalping.... well, not so worth it then.
  • #38
  • Feb 10, 2015 9:11pm Feb 10, 2015 9:11pm
You need stop losses but you have to learn to place them carefully. You have to place them at the point where the reasons that caused you to enter that trade are not valid anymore.

then better close that trade for it could get really nasty if you don't
  • #39
  • Feb 10, 2015 11:18pm Feb 10, 2015 11:18pm
I feel like the OP was very biased on his view about the stop-loss. Speaking for myself, I could never trade without a stop-loss because It has saved me from blowing my account many times, especially when the trend goes against me, which in turn allows me to trade another day .

Its not everyday you must make profits, sometimes you have a take small losses, as I was told its all part of the game.
Trade smart, not hard
  • #40
  • Feb 12, 2015 10:42am Feb 12, 2015 10:42am
Quoting TimTheTrader
I feel like the OP was very biased on his view about the stop-loss. Speaking for myself, I could never trade without a stop-loss because It has saved me from blowing my account many times, especially when the trend goes against me, which in turn allows me to trade another day . Its not everyday you must make profits, sometimes you have a take small losses, as I was told its all part of the game.
LOL, Spot on..often some newbies are tricked into NOT using any SL and before you know it, they are all burned out..
1 trader viewing now