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Do you use stoploss?

  • #201
  • Nov 12, 2015 2:22am Nov 12, 2015 2:22am
Quoting jen101
Sometimes I use SL; sometimes I prefer to hedge, then at least I get the opportunity to recover something, if not all. By not using SL I don't get taken out by tips of spikes, which for a time was a real problem for me. I do have evidence of stop hunting, it's a very real thing. It's so obvious when you watch 2 accounts with different brokers side by side. Needless to say that broker (ecn, well regulated) was promptly dumped.
Don't tell me that you get spikes on majors they happen only on low-liquid markets which I prefer to trade with low volumes as its hard to enter and exit for example USD/TRY with one lot without giving 10-20 bucks on slippage...
  • #202
  • Nov 12, 2015 4:17am Nov 12, 2015 4:17am
Before you will ever become successful in anything you do the first thing you must do is drop this victim mentality. "Stop hunting" is a term coined by those who suck at trading. A way to justify in their minds why the trade was stopped out. They were "right" in their minds and it was the evil broker who "hunted" their stop just before moving in the right direction. I even read one post by someone who claims that it was "Obvious when you watch 2 accounts" and that they promptly dropped that broker.... uhhhh why? Instead of complaining about something you cannot change, if you can "see" it happening WHY NOT TAKE ADVANTAGE OF IT?

"Hunting" implies that they are searching for where the stops are, in reality if you have a stop placed on a trade they can actually see where the money is no hunting required. Because most retail traders trade like sheep, finding the slaughter house is easy for them. You will usually find the herd hanging out at the previous swing high or swing low in price. Maybe a few pips outside of that but for the most part right where the sheep have been told to hang out.

If you feel that your stops are being "hunted" then move your stop and adjust your position size accordingly. If you want to become successful in trading stop hanging out with sheep.

To answer the original question: If I am in front of the computer then I do not place physical stops on my trades. If I leave for any reason I will place a stop. Once I return I will remove that stop. I do have mental stops and I am disciplined enough to close a trade that reaches that level. One caveat to this is that I have multiple internet connections and multiple ways to access my trading accounts (desktop, tablet, smart phone or even as a last resort a phone call)
  • #203
  • Nov 12, 2015 4:32am Nov 12, 2015 4:32am
Quoting magnumfreak
Before you will ever become successful in anything you do the first thing you must do is drop this victim mentality. "Stop hunting" is a term coined by those who suck at trading. A way to justify in their minds why the trade was stopped out. They were "right" in their minds and it was the evil broker who "hunted" their stop just before moving in the right direction. I even read one post by someone who claims that it was "Obvious when you watch 2 accounts" and that they promptly dropped that broker.... uhhhh why? Instead of complaining about something...
Very well said. As traders, we take trading personally. So much so, that we blame our broker for the positions which we have placed, that have turned against us. Social trading has led to terms like "stop hunting" being a commonly referred and highly believed idea, which feeds into our natural instinct of "deflecting" instead of "reflecting on what has led to our stop loss being hit. I also believe that the "stop hunt" mentality has led to an increase trend of "trading with 0 stop loss" as many people base their next move on past experiences. If a trader, while trading, was "stop hunted" then he or she will pull his sl the next time, or not even place one because the last time their trade stopped out, the market then spiked in the direction which they assumed it would. That is an utterly dangerous way of looking at trading.
  • #204
  • Nov 12, 2015 5:23am Nov 12, 2015 5:23am
I just cannot accept the idea of losing my entire account at any given moment!​
  • #205
  • Dec 22, 2015 9:33pm Dec 22, 2015 9:33pm
i prefer to use stop loss because it can help me when i have no time for watch the chart but im already predict teh price movement, when i use it im just think about if my predict wrong i can minimize my loss.
  • #206
  • Jan 17, 2016 9:01pm Jan 17, 2016 9:01pm
I have a few questions about stop-loss before I begin trading.

1. Can brokers see my stops. If they can, is it best to have mental stops?
2. What is the worst case scenario of not having a stop? Can it still happen with a stop?

Thanks, any comments are appreciated.
  • #207
  • Jan 18, 2016 5:21pm Jan 18, 2016 5:21pm
Here is a guy who didn't use stop loss, and was comfortable with the fact that he was risking a small % of his account.

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  • #208
  • Jan 18, 2016 6:34pm Jan 18, 2016 6:34pm
Quoting magnumfreak
Before you will ever become successful in anything you do the first thing you must do is drop this victim mentality. "Stop hunting" is a term coined by those who suck at trading. A way to justify in their minds why the trade was stopped out. They were "right" in their minds and it was the evil broker who "hunted" their stop just before moving in the right direction. I even read one post by someone who claims that it was "Obvious when you watch 2 accounts" and that they promptly dropped that broker.... uhhhh why? Instead of complaining about something...
Excellent point about herd trading. It would appear as if social trading is based on herd trading. Price action / scalping seems unorthodox and taboo.
  • #209
  • Jan 18, 2016 6:36pm Jan 18, 2016 6:36pm
Quoting Badem
I have a few questions about stop-loss before I begin trading. 1. Can brokers see my stops. If they can, is it best to have mental stops? 2. What is the worst case scenario of not having a stop? Can it still happen with a stop? Thanks, any comments are appreciated.
The broker can see your stop loss. Should you decide to not trade with one, then they could also see your Max stop loss, better known as Margin call price. The worse case scenario is that you margin call, or end up with 1200 pips in floating loss.
  • #210
  • Jan 21, 2016 1:14am Jan 21, 2016 1:14am
Stop loss is absoultely necessary in forex trading, especially this year, we have saw too many politic events, forex market is easy to be affected.
  • #211
  • Jan 21, 2016 5:05am Jan 21, 2016 5:05am
stop loss is very important in forex trading, with stop loss because it will allow us to maximize the well of my trading capital, therefore we need to use stop loss well. and with a stop loss then we will be able to minimize the risk of forex
  • #212
  • Jan 21, 2016 5:12am Jan 21, 2016 5:12am
Why don't I use a stop loss? Because I work for one of the biggest banks in the world and one of my peers has written and shown me numerous methodologies for algorithmic stop hunting. They NEED your stops to create liquidity for themselves, and the INSTANT you put on a stoploss you now have a huge beacon on ur head saying 'i'm scared please take my money." Oh, and if you don't use one, you literally cannot be detected in the order book and are therefore in stealth mode.
  • #213
  • Jan 30, 2016 5:05am Jan 30, 2016 5:05am
Quoting disker23
Why don't I use a stop loss? Because I work for one of the biggest banks in the world and one of my peers has written and shown me numerous methodologies for algorithmic stop hunting. They NEED your stops to create liquidity for themselves, and the INSTANT you put on a stoploss you now have a huge beacon on ur head saying 'i'm scared please take my money." Oh, and if you don't use one, you literally cannot be detected in the order book and are therefore in stealth mode.
they also need my TP to get into their trades. DONOT FORGET THAT
  • #214
  • Jan 31, 2016 9:08pm Jan 31, 2016 9:08pm
Quoting disker23
Why don't I use a stop loss? Because I work for one of the biggest banks in the world and one of my peers has written and shown me numerous methodologies for algorithmic stop hunting. They NEED your stops to create liquidity for themselves, and the INSTANT you put on a stoploss you now have a huge beacon on ur head saying 'i'm scared please take my money." Oh, and if you don't use one, you literally cannot be detected in the order book and are therefore in stealth mode.
Do you think your tin foil hat looks fashionable pal?
  • #215
  • Feb 4, 2016 3:37am Feb 4, 2016 3:37am
Not using a stop-loss it like trying to pet a chihuahua you dont know and expect the situation not to end in scars and tears.
Price-Action Extremist
  • #216
  • Edited 12:23pm Feb 4, 2016 10:02am | Edited 12:23pm
Is it possible to trade without stop-loss relying on the whole pip range for a determined pair?

I mean, take for example the EUR/GBP, it's at 0,7650.

By my calculations, if I put a buy order, it would be necessary the value to go down by 7650 pips to blow up the account.

So if I have a 10.000,00$ size account and divide by 7650 pips, the maximum value of the pip would be something like 1,30$ to not go bankrupt.

Am I missing something? Or this is a possible long term strategy?


PS: I know there's comission and interest on taking a position for a long time, but will discard that for now.
  • #217
  • Feb 4, 2016 10:19pm Feb 4, 2016 10:19pm
forex risk no one knows so we need to be able to minimize risk by trying to always use the SL and TP. Trading with SL and TP will help us to minimize the risk of forex properly. That way we will be able to benefit from forex trading
  • #218
  • Feb 7, 2016 12:58pm Feb 7, 2016 12:58pm
Yes I would think stop-loss is an important risk management technique especially for those of us who can't watch all the time. The negative of course, as been discussed, is the risk of being whipsawed and of course the risk that the broker can't get your order off at the stop price in a crazy market situation. What about options as an alternative? Many currency futures have options associated with them...it costs to buy a put option but avoids the negative of a stop loss.
  • #219
  • Feb 17, 2016 10:20pm Feb 17, 2016 10:20pm
stop loss is necessary to minimize the risk of forex properly. We do not know how much risk that we will encounter and therefore, we need to always use a stop loss to minimize the risk of forex so well that we will benefit from forex
  • #220
  • Feb 18, 2016 5:59am Feb 18, 2016 5:59am
I agree. Stoploss is necessary because it provides you with more control over your own trades, especially when you don't have the time to follow them 24/7.
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