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Real Fx traders do not use stoploss

  • #461
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  • Jul 17, 2015 7:09am Jul 17, 2015 7:09am
I thought I'd come in and add my 2 cents to this surprisingly long thread. As may or may not already been stated, it is my belief that the necessity of stop losses also largely depends on a few factors. Those factors are the time frame and leverage. If you are an intraday trader using higher leverage, you would be a fool not to use stop losses. However, if you are a longer term trend trader who uses very wide stop levels and very unlevered positions, then it is not that risky to use a stop loss as the price per pip is very small and it takes very large movements for profit or loss.
  • #462
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  • Jul 18, 2015 11:07am Jul 18, 2015 11:07am
It depends from strategy. But From my experience: Definitely use SL! And profi traders do that
  • #463
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  • Jul 19, 2015 4:37am Jul 19, 2015 4:37am
it depends what you mean with pro traders, but ordinary guys who trade at home and are profitable traders, I can guarantie they all most certanly use a stop loss.
if you are talking about bankers, thats a compleatly different thing, they use other instuments to hedge in, so they are never exposing a high risk. for example, they might buy options counter trend, so if they are wrong they still make money
Bulls are stupid Animals!especially when Im short!
  • #464
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  • Jul 19, 2015 6:23am Jul 19, 2015 6:23am
Quoting roughtrader
it depends what you mean with pro traders, but ordinary guys who trade at home and are profitable traders, i can guarantie they all most certanly use a stop loss. If you are talking about bankers, thats a compleatly different thing, they use other instuments to hedge in, so they are never exposing a high risk. For example, they might buy options counter trend, so if they are wrong they still make money
i dont use a stop loss , and dont roughytrader speak for me
people leave, but this thread will go on for ever
  • #465
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  • Jul 22, 2015 7:04am Jul 22, 2015 7:04am
S/L does not always fix loss, as well as T/P does not always fix profit. if the deal goes my way, I just adjust, tighten s\l in a better way. and then I overtighten each candle (sometimes every 3) by the interim period of the M15 (M5 happens) to profit state for me. I would not say always, but often deals bring much more revenue than planned. This already implies a permanent monitoring of the order.
  • #466
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  • Aug 27, 2015 7:20pm Aug 27, 2015 7:20pm
I totally agree that using or not using of stop-losses directly depends upon particular trading style. For instance, they are not necessary in scalping. If a one is trader who just begins his/her FX advantages, SL defenitely should be set, especially in long term deals. Of course it also depends on how much do you care about your wallet
  • #467
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  • Sep 1, 2015 11:40am Sep 1, 2015 11:40am
No using a stop loss is always super stressful for me.
I would rather limit what my potential down side could be.
Also I don't trust myself to honour a mental stop.
  • #468
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  • Sep 24, 2015 9:14pm Sep 24, 2015 9:14pm
Well, it sounds just like "Real men never shave" )))
If to be serious, it depends on style of trading and personal preference. I don't see any cons using stop-losses, unless you trade with smallest possible leverage and big amount
  • #469
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  • Sep 29, 2015 1:12am Sep 29, 2015 1:12am
Using or not using stop loss is based on many factors like trading style, trading capital, trading experience. A trader may not be using stop loss and yet making profits while other may be losing even if he is using a stop loss. Its a very long, in fact never ending debate.
  • #470
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  • Sep 29, 2015 8:25am Sep 29, 2015 8:25am
Even professional traders use a stop loss. I think some of them just use a mental stop loss. If person is not using a stop loss then it's simply a gambler.
  • #471
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  • Oct 3, 2015 12:00pm Oct 3, 2015 12:00pm
this is my way for trading i don't use the SL because i believe all deals will win finally .
  • #472
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  • Oct 6, 2015 9:51am Oct 6, 2015 9:51am
Quoting Zahedalani
this is my way for trading i don't use the SL because i believe all deals will win finally .
I've seen few times a full blowups of the accounts with such philosophy.
Very dangerous :/
  • #473
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  • Oct 6, 2015 11:32am Oct 6, 2015 11:32am
Quoting Allan
{quote} I've seen few times a full blowups of the accounts with such philosophy. Very dangerous :/
Almost all prices will return sooner or later, it simply depends on the leverage. The thing with currencies is that neither side will ever reach 0. But it's a technique where the exit strategy is very important, if you bought EUR/USD at around 1.40 without using one of plenty exit options you'd be in a problem.
Having said that: trading without losses says nothing about the performance.
  • #474
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  • Oct 6, 2015 3:48pm Oct 6, 2015 3:48pm
Here is my take on this.

If you don't use a stop loss and you are in a losing trade you will stay in a losing trade. The idea that all prices eventually turn around may be true, but if you enter at the wrong time it could be a very long time before it ever turns around. Also you are sitting on a loss that you could have turned around to a win. Say for instance you enter a trade and are down 20 pips. You may say "oh it will turn around." The thing is you were already wrong once. Now you want to be wrong twice?

In the long term not having an S/L will burn you. It totally removed the idea of succeeding on 50% correct trades using the same SL/TP approach because now you may lose more than you seek to win.

Finally not using an SL means the psychology of the trade will affect you more then the reason you got into it. If you have an SL and stick to it, if you lose you lose. If you don't have an SL then even if it goes below what you want to lose you have to still convince yourself to get out of the trade which you probably won't till you lose 2 or 3 times what you originally were willing to lose on it.
  • #475
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  • Oct 7, 2015 8:06am Oct 7, 2015 8:06am
As far as I am concerned it's always prudent to use stop loss. Even if we discount all other arguments why that's a good idea, you could just have the sheer bad luck of your Internet connection going down and being unable to close your positions on time
  • #476
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  • Oct 7, 2015 8:23am Oct 7, 2015 8:23am
Quoting Jart
I totally agree that using or not using of stop-losses directly depends upon particular trading style. For instance, they are not necessary in scalping. If a one is trader who just begins his/her FX advantages, SL defenitely should be set, especially in long term deals. Of course it also depends on how much do you care about your wallet
Scalpers would be nuts to use SL, for obvious reasons but for the rest, a trader would be nuts not to use SL as I have mentioned earlier before...while using or not using a SL can depend on the strategy of the trader, that does not take away the fact that not using one is akin to driving a car sans any brakes..tip:CHF
  • #477
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  • Oct 7, 2015 8:46am Oct 7, 2015 8:46am
Quoting Blackship
hi guys, I've heard that pro fx traders who do not use stop losses and this had contributed much controvesy. Anyone who approve or disapprove please comment
It's a true as "Real men smoke Marlboro".
  • #478
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  • Oct 7, 2015 10:01am Oct 7, 2015 10:01am
Quoting Mr Hatch
{quote} It's a true as "Real men smoke Marlboro".
Dead men smoke Marlboro...which I think would still apply to this situation
  • #479
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  • Oct 12, 2015 9:35am Oct 12, 2015 9:35am
Quoting Mr Hatch
{quote} It's a true as "Real men smoke Marlboro".
That's nice.
  • #480
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  • Oct 27, 2015 9:13am Oct 27, 2015 9:13am
I dont think that can be absolutely true or false.It depends on what experience the guy has what system or startegy and the capital is veing used
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