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Joined Jul 2020
|130 Posts
Yes. I use SL al time. It helps me to reduce my loss if my analysis goes wrong. I only take 2% risk of my capital per trade. According to that I set my SL.
Dear traders, I want to ask you questions about trading: 1. Do you use stoploss or not? 2. Why do you use stoploss and why you don't? 3. How many pips do you use your stoploss? thanks anyway
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I use stop loss but it is flexible 1% from equity. So in absolute amount it varies depending on available equity. I care more about reducing drawdown and then about returns, this is my method to increase Sharpe ratio of my strategy.
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Joined Jul 2020
|129 Posts
Risk reward is an important factor in trading. The better the risk-reward, the better the trading result. And if you want to manage this risk-reward, you must use stop loss. Stop Loss is a part of the trading discipline. Money management requires to stop loss. Stop Loss saves a trader from an unexpected move.
It is absolutely necessary to include stop loss in every trade unless you are feeling adventurous to make a jump or dive into risky area when it comes to trading. I personally always made sure to include stop loss in my trading to avoid getting into a mess.
there are ways to manage risk without using a stop loss. One does not have to always use a stop. However this is very dependant on strategy. I do not use stops but it has taken me almost 1.5 years to finesse my strategy
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Joined Apr 2018
|323 Posts
using stop loss accurately is a very good technique, need to be experienced about this is a long time process , for that reason most of the time we lost interest and never use it.
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Joined Aug 2020
|109 Posts
It is very important to use stop loss in Forex trading. If a trader does not use stop loss, he may lose his investment. Stop loss will protect you from unexpected loss. It is mandatory to use Stop Loss to follow Money Management and Risk Management. You can never be successful in trading if you do not use stop loss.
I understand that the the size of the stop loss depends on the pair as well as the setup. You definitely need a larger SL for GBPNZD compared to USDJPY.
Does any one here use a 5pips SL or less for pairs with low average daily range (ADR)? If not, what was the tightest SL you have ever used?
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Additional Username
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Joined Aug 2020
|109 Posts
Stop Loss should be used for safe trading analysis. If you trade with stop loss, the chances of the account becoming zero are less. Beginner traders should use Stop Loss at all times. Institutional traders use stop loss to maintain risk rewards. All in all, stop loss should be used to trade successfully.
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Joined Jul 2020
|131 Posts
Yes I use stop loss as I do short term trading. Usually I don't allow my trade to roll overnight. That's why I need to use stop loss. Otherwise If I fall against the market, it could wipe out my account.
Yes I use stop loss as I do short term trading. Usually I don't allow my trade to roll overnight. That's why I need to use stop loss. Otherwise If I fall against the market, it could wipe out my account.
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I don't like keeping trades overnight either. I need to sleep and I don't like being unable to watch how my trades develop.
Yes I use stop loss as I do short term trading. Usually I don't allow my trade to roll overnight. That's why I need to use stop loss. Otherwise If I fall against the market, it could wipe out my account.
Ignored
I also use stop loss for my trading. My trading ability doesn't not permit to predict long term market trend. If I don't know it how I know let my trade run?
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Joined Mar 2020
|170 Posts
Of course dear the use of stop-loss is very common and important to use in forex, traders are not doing right if they are ignoring stop loss during trading, Trading is always ambiguous when you don't have a stop loss in trading and the proper use of it give you surety that you will not lose the whole margin of your account at once, risk management and money management both should be used well wisely with stop loss too.
