Sometimes I use stop-loss orders. To be exact, I was used to relying on them in the past. Now I use them from time to time, but for the last time I have even forgotten about them. It’s because I mostly scalp for the last time. Of course, when scalping, I control the situation and I will certainly manage to close it manually once I find my loss unacceptable.
I also tried to replace stop-loss orders with pending stop or limit orders or a combination of them but it turned out that it works bad. When such a locking situation happens, it totally distracts me from other trades. So, as of now I prefer not to use stop-loss orders. I’d better close the trade on my own.
Totally depends on my situation. If im playing the long game and not monitoring my trades as much i'll place a SL. If im scalping and at my computer/phone i'll use my own judgment.
I'll answer a few questions today. Maybe it will help someone along in their journey. I always use a stoploss. I set it at about 1X daily ATR. Sometimes a little more for a very volatile pair. Trading without a stoploss is like driving with your eyes closed. You are bound to crash eventually. That said, if you are consistently profitable for every month in a year, don't change a thing. If you aren't, trade with a stoploss at the minimum live trade amount, 0.01 lots per trade, until you are. Happy Trading!
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
Ignored
1. Yes I do use a stop loss
2. I swing trade the daily chart and a stop loss will stop the bleeding if price goes the opposite direction, at a time where I am not looking at the charts.
3. Depends on what 1.5 the ATR says.
2. Why do you use stoploss and why you don't? - there's always a point I need to cut my loses. Plus I use a 2:1 (at minimum) profit:loss raitio. It's the only way to achieve this on a trade.
3. How many pips do you use your stoploss? It depends on where my take profit is. At minimum, it's half the distance of my take profit.
I am rather new to forex, but I'll try to answer too.
1. Do you use stoploss or not?
Yes, though you can also just watch the trades and do well like that if you rather.
2. Why do you use stoploss and why you don't?
Without a stop-loss(or open trades in both directions) you're at risk for high amounts of drawdown, which can liquidate your account in extreme cases. Ideally I generally would want a strategy that works well even with a stop-loss. If a strategy has no stop-loss and price goes against you, you'll have to either manually close the trade at a loss or see if it eventually goes back in the winning direction(if it doesn't though, you can become liquidated).
3. How many pips do you use your stoploss?
I'm still a bit confused about how this is calculated exactly, when you add the spread and the commission fee, which can vary for each pair. But I would say the stop-loss you use probably depends a great deal on what kind of strategy you use, and how much percent of your account is on each pip.
I always use a stop loss. You need to understand the essence of the markets is probability. You need to manage your risk so you have time to recoup your losses and gain back what you may have lost. You can only do that with stop losses
Yes, I use stop loss as the market is very unpredictable and to save myself from major losses. It is the safest option to save yourself from blowing your account.
Ignored
You are absolutely right buddy!
No matter how closely we try to monitor the market, it is impossible to have accurate predictions. Using a stop loss is the safest option when the price trend goes the unexpected way.
I always without fail use a stop loss, my strategy and all strategies are based on probabilities. If you don't use a stop loss one of the main variables is constantly in fluctuation you could lose more on one trade than the next. You then start chasing that extra loss and start moving your TP higher this then causes it to reverse on you. You revenge trade and account blown.
I mostly use stoploss when i trade because we can not exactly predict market what it will do in next minute or so and stop loss can save us from big loss.
