and stop loss is a part of ur analysis when u trying to predict the price movement, with a good analysis u can place ur stop loss take profit at the right position, if u think ur stop lose not make cant make more profit dont think about how usles ur SL, just blame ur analysis after u do it u need to try to improve it to make more profit at ur next trading.
- #284
- Dec 30, 2015 12:51pm Dec 30, 2015 12:51pm
- Joined Oct 2013 | Status: Trader | 1,929 Posts
I don't trade with a SL anymore, but that's because my method is a little unconventional. If I were starting out I would definitely use one. You need to protect your capital. But they're so frustrating ... how many times do you make a trades, watch the price run your SL only to reverse the opposite direction? You curse the world, get angry, try and chase your loss etc. Too much emotional difficulty there for me.
Hello, According to me, I would like to keep a stop loss in case the conditions prevailing in the market are uncertain and volatile. For example, when I was trading near the FOMC meeting this month, on all the trades I had kept a Target profit along with STOP LOSS. The stop loss helps us prevent major losses which can potentially happen during the turbulent market conditions. Its is a basic risk management tool during the rout in equities markets or commodities market or forex market. Be safe and put SL in case trading during volatility or when...
I tried trading without a sl for while I would make a profit then blow it all in one trade i wouldn't recommend it Id say that you definitely need sl so at the moment my sl is 10 pips
GBPJPY, GBPNZD would take out that 10 pips SL in less than 5 seconds in any opening hour around the clock.
If you live in denial you could make a synthetic stop loss with a hedge. you could probably successfully average out of losing positions most of the time. Is margin call considered a stop loss? You don't have to use a stop loss necessarily. There are plenty of different ways people can trade. But the question is - would you trade without any risk management?
Margin call is NOT a risk management. Margin call is a COMPLETE DEFEAT and one's reality check (if he continue believe the table will turn).
When I was interviewed as rogue FX trader for oversea investment bank back in 2012, any DD over 15% would be considered as poor risk management.
I used to water ski. I hated to fall and I would actually hang on to the tow rope and the boat would just drag me. There is no way I can trade with out a stop. As Al Brooks says, "your stop is nearly as important as your entry". This helps me to determine my entry BTW. If I don't have a stop above or below an area or resistance or support that fits my plan, I can't enter.
BTW, I like that water ski example.
and stop loss is a part of ur analysis when u trying to predict the price movement, with a good analysis u can place ur stop loss take profit at the right position, if u think ur stop lose not make cant make more profit dont think about how usles ur SL, just blame ur analysis after u do it u need to try to improve it to make more profit at ur next trading.
SL involved taking hits and cuts into your account. This skill needs to be learned in a painful way in most the case. That's the only way to improve your SL.
One day you would mistakenly feel your analysis is perfect with 100% probability, does that mean you can also withdraw the SL? Maybe we need to rethink that a little bit.
SL is a great tool when you're learning, Id say it's essential actually. But as you gain experience and develop your own style and understanding, you may well find that SL is a big part of why you're losing.
I tend to retreat from using stops as playing with small lot and decent deposit you can expect the price will sometime enter profitable zone. Apart from my news straddle strategy use free-of-stop strategy to keep USD/RUB positions on Hotforex (mostly short ones as long swap is quite annoying) Just don't keep to big deposits to avoid being depleted by rollover spikes, etc.
do trading without stop loss take a big risk, because for trader that have a much time for watch the price movement, stop loss is very needed. i just suggest better u use stop loss when u do forex trading.
any trader have their own technique to do forex trading, if u think its work for u then i think its good for u. but for me, i'd rather to do trading without use stop lose, cause i choose to do trading by my own, ill focus when i do forex trading, cause i want to live by forex trading.
with or without the sl, here are my questions needs to be answer by yourself.
- would you drive a car without a break?
- would you be able to forecast the market correctly 100%, so every trade would be ended up winning and no need to have SL?
- would you be able to anticipate any news event or black swan event in the FX market at ALL time?
- would you like to well preserve your account WITHOUT the risk management by setting correct SL and fixed risk on every trade?
- would you like to trade your account WITHOUT knowing how much you gonna lose on the next or current position?
If you answer "NO" for any above questions, I would recommend you to have a sl set on every position you place.
btw, there are a lot more to how to set your stop and how it works with risk management. Learn it, try it and master it.
If u luv happiness, start w/ discomfort, make friends w/ pain and failure.
100 Hits 0 Miss All Time Return:
35.8%
- #287
- Jan 4, 2016 12:58am Jan 4, 2016 12:58am
- Joined Oct 2013 | Status: Trader | 1,929 Posts
If u luv happiness, start w/ discomfort, make friends w/ pain and failure.
100 Hits 0 Miss All Time Return:
35.8%
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- #293
- Jan 5, 2016 11:34am Jan 5, 2016 11:34am
- Joined Oct 2011 | Status: quo | 4,193 Posts
As Above, So Below
- #298
- Jan 5, 2016 2:17pm Jan 5, 2016 2:17pm
- Joined Oct 2011 | Status: quo | 4,193 Posts
As Above, So Below
