Real Fx traders do not use stoploss

Professionals will usually have a risk tolerance level in the back of their mind ie monetary value but don't want to set a concrete loss in place.

It also depends on the market and the time frame.

Bank traders have a luxury of flexibility using the banks balance sheet and don't get a margin call like the retail player.

Keeping that in mind retail punters should look at that model and trade within their leverage allowing the position flexibility just in case a news event or market thins out in overnight sessions near NY close and early Australia.

normally SL mean 2 things: -
1- the position is not vault under this level
2- you cant afford lose more than this amount.


And one thing can SL do for the trader is when the price start going agents you most of traders start losing there interest and the maybe start hoping to go back in better place so they start not thinking clear.

I will say that it's wrong.
Most traders, including pro traders, always use SL.

[quote=VicWraith;8110175]I will say that it's wrong. Most traders, including pro traders, always use SL.[/quote


How do you know ? As far as I know they use hedge strategies instead of SL .

[quote=hadi.t;8200857] rubbish pro traders have more than enough money to have enough equity to cover a pair that went wrong and yes a hedge is a ok thing but to lose money on a stoploss, is a no no

[quote=Aussi;8200879] 100% agree with Aussi. Speculators with long-term view do not loose sleep on 200 pip spikes or SL hunts. They see everything as opportunity.

guys SL did not mean that i cant afford to lose more so close the trade

any one think like this he must stop wasting time in the market

you dont know if the price will go in your side again if he pass this point so you prefer to close the deal and wait for a beater one.

all pro traders are not same . depend of there strategy and most of them go long time strategy like +150 pip they dont aim for 20 or 40 pip like us

i saw a 70 year old man he aim for 100% and risk only 4% ( this is pro guy) with SL and he hit it 5 times in a row but when he gain he do like 100% or 120% each time
so he always +

I think this is a pseudo proposition. Using stop loss (or not) does not make you a real trader.

You can be a real trader trading with low or large capital, using stop losses or not, it will all depend on the situation and trading goals of each broker. I consider myself a real broker and use stop loss in every trade just because I prefer loosing the risk and making my trading a little bit safer.

I think stop loss has nothing to do with if you are a pro trader, pro trader can use stop loss or hedge or whatever suits their strategy.

It depends on individuals, stoploss is necessary for newbies, because they lack of experience, survive should be considered. But for veterans, or called real Fx traders, if they know well or make a accuract judement about future trend, temporary lost is accepted for much more profit.

since Humility explained that it is better to use maximum of 0.25lots for 5000 in an account with 1:500 leverage. please, what is the ideal lots size to use in case of 1:200 leverage with an account of 5000.

After trading forex unsuccessfully for many years, I have finally devised a strategy that has been making me consistent profits for the last 7 months, and I have to say that this strategy that I'm using does not have stop loss. There are other ways to mitigate the risk of the market going against you, other than having an actual stop loss.

If you aren't winning using stop losses, how about turning that around. Take the other side, ie. buy low. And instead of stopping losses, stop winnings - because if you bought low then there's no losses to consider about.

There's a lot of "education" but you have to consider who is supplying the education. Why are brokers spending $$ million on education? Do they have something to gain, perhaps by being on the other side when the stop losses execute?

The market is divided into asia,us,london/euro "sessions". These sessions have open and close. If you are trying to figure when to "stop wins", perhaps you could build something around these sessions opens and closes. Maybe they are called open and close because the pros are opening trade and then closing the trade. Just a thought.

Now I don't say this is without problems. I don't trade intraday myself (yet atleast). The overall idea I have is that if I expect to make $X/year (as suggested by forward testing), then it is fine by me if something crazy happens and I lose one or two months profits. Maybe even more. You could use options to insure against this but having read about them I have become quite convinced that using options as insurance from some great move that happens once in blue moon simply is more expensive than taking that big hit now and then. By big hit I mean you sell Y worth of CHF and then CHF goes up 30%. Position size such that even after losing 30% on that one trade, you are still making enough % a year to make this worth it.

You may also think stop losses prevent you from getting hit with such 30% loss - well it didn't stop those on the CHF trade from losing - stops execute as market order after stop price is hit. Also those who hoped to enter into the trade, well they didn't get their profit either due to same reason. Infact, Currency futures do not even offer stop mkt order (there's stop LIMIT - but I wouldn't leverage 40x with the idea of that protecting me). I have a feeling the stop order was invented as an answer to the fear caused by using lot of leverage. Ideally you could have infinite leverage (infinite margin). But as long as we don't, the key to leverage is to only use it when you have practically "inside information".

There's usually those situations once a year on average - some news that will take big move and plenty time to be priced in. example: I happened to catch a news about gold that made me go "LOL now it's going to crash and burn"... And it went down without retrace. Same happened with eur/usd last year - it wasn't quite as obvious but you just develop a feel for it - watch the weekly chart and catch some news that's unusual. There was no news about BOJ QE last october but I guessed this one simply by looking at how high JPY was (and timed using calendar). (how you exit a long term position? A long term trend could go for year or more. I'd say, once you got it going, keep it going until there's news that suggests it's going to reverse. - remember there are SWAP/interest costs to consider with leveraged position trading - so once a strong move stops, if there is considerable swap cost involved that's it)

Ok, I'll chime in on this important subject

The truth is, if you have a specific system that requires xTP and xSL then of course you need to use that system's parameters. That being said, if you are a trader that has a certain view of where the market is going within your specific trading time period (the time you intend to be in the market) then if you place a stop, the likelyhood it will be hit is very strong, end of story period.

*That being said, if you are a new, newer or still learning trader, it is better to place stops than lose 1/2 or your whole account. So the answer is YES, NO and PROBABLY.

Idealy what a trader would like to achieve is the ability and skill to predict the true current direction of the market, enter your postion and TP and leave.

A mental stop loss is very important because no one knows the future and a trader needs to know when he is wrong.

Having a stop loss is part of money management and risk management.

since last 3 months i start paying some money to take courses and i saw the defiance between the free coruses (YouTube,forums,broker lessons and the paid courses)

it is completely difference and it will open you eye in new and real things that can work in FX with some training.

so i advice everyone to stop getting the free lessons and pay something for you future business with PRO only

to try to find a diamond in the garbage( i don't mean the forum but in the net there is dozen of garbage that will destroy you mind.

There is nothing that any paid course can teach that is not already freely available.

They might not use stop loss per se but they do put in place some kind of loss control mechanism for risk management.

As an experienced trader myself, I do place a stop loss. But the level is so far from entry that it will not affect my mental stop loss for the current position I am in.

The stop loss that is placed on my trade is to prevent an unforeseen disaster from affecting my position and wiping my account clean