Do you use stoploss?

Currently I am not using stoploss as these limit my trading method. I am having good times to see my charts so managing the positions manually is working well for me.

1) I tried to use stoploss but my incapability of keeping myself disciplined always put me at a disadvantage.

2)From what I had learned, not using stop loss = disaster as I've blown my account 3 times due to not using a stop loss.

3)Usually the pips of my stop loss depends on the market condition, as I tried to put it at the places where it invalidate my trading strategy.

Using stop loss is very necessary as you may suffer huge loses if you don't use one. All the successful trader use stop loss as a necessary tool in order to avoid big losses.

I trade via spreads on Nadex. Due to the nature of the contracts, I don't need a stop-loss because it is built-in to the structure of the contracts. For example, consider the following trade. I am short GBP/USD at 1.5436. The spread has a floor of 1.5040 and a ceiling of 1.5840. The theoretical maximum that I can lose should GBP/USD increase dramatically to 1.5840 or beyond at expiry at 3PM tomorrow (Sep 11, 2015) is the difference between the ceiling at 1.5840 and my entry at 1.5436 times $1 = $404. In practice, is the GBP/USD likely to rise 404 pips in the next 20 hours? I doubt it. But, at least I know my max risk up front. Meanwhile, suppose it rises 100 pips (taking out many traders who got in where I got in because they set a stop loss at 1.5536) but ultimately falls again below my entry at 1.5436 to settle at 1.5400 at expiry time? Then, I will make 36 pips. So, I am protected against catastrophe, yet able to withstand floating losses giving my trade a chance to return to profitability before expiry. So, really, stop losses aren't needed for my way of tradig.

its depends..when you trade with high leverage you must use SL.
but when it comes to low no need to use SL.

hope you guys will agree with me..

I know people that do not use stop loss. but I dont feel confortable doing it, I always use stop loss. Not fixed pips but based on tech zone.

Yes I do use Stop Loss. Usually if there's a potential reversal coming in then I use a 5-7 pips below the last high/low.

Hey ronald, I think 186 replies before me all already brought great points.

Personally for my Strategies I don't go with the traditional SL. Since my Strategy requires a pretty significant intraday move of 50 pips it often happens that the market moves against me early by exactly that amount aswell.
Not using a Stop Loss though can in some situations be literall suicide so mostly I just put my SL on 100pips, so basically twice the amount of what I am willing to take my profit on in the trade.

This though should only be used if your strategy, like mine always works except some rare cases of bad positioning or influencial news.
In my cas this just happens once or twice a month and when it does, boo-hoo, I just loose 100 pips. If I didn't have them the loss might be a lot higher if I am not constantly monitoring the screen.

That's just my 2 cents/pips on a Stop Loss.


Last but not least: google "Trailing Stops". They are a great tool to reduce risk!

cheers from Austria

grexecution

Personally I don't use SL, just cause too many times I was left with profit after a huge spike. Contrary, If i Had SL, i would have being able to open orders on spike and get even more profit. So my reasoning is quite questionable.
Also i think it depends on volume. 10 lot position holds much more risk on market swings. I tried 10k demo with 10 lot orders and it tends to double, than blow all profit. Contrary 1k turns into 2-3k with loses around 10%.
So in conclusion I'd strongly advice to use SL on any order more than $200. Hope is good when you have nothing to lose.

No, I do not.

I do not use it because I wait for the right time to close it manually.

I use stoploss for mergency and exit with the plan

me

1: I always use S/L
2: Luckily enough for me I'm still on a Demo account. For the times that i have set up a trade (not using a stop loss) go to bed and wake up to a thousand plus in the red is the worst start to a day ever, even if it isn't real money haha.

SL is a required thing which actually differs a trading from a gambling. You plan your possible loss instead of just bet it doesn't happen and hope it will reverse, if it have happened.

For any broker that doesn't offer zero balance protection stop losses are absolutely necessary.

I always always use a stoploss. Doesn't everyone remember the day SNB unpegged from the Euro? In general, money management is the core of being a successful trader, the only thing you have real control over is how much you choose to risk on each trade. I think that people who find they get stopped out all the time (or think they are being stop hunted by brokers) aren't choosing good positions for their stoploss placement (or perhaps your broker falls into the category of scammer - not valid broker).

1 : Yup, I use it...
2 : Why? Because it's a part of my trading strategy, to anticipate any unwanted events on the market and because I'm not a trader who always watch those candles more than 2 hours in a day. But you may not using it and anticipate your big loss by to cut your loss if have more time to watch these candles.

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.

Yeah, I think stoploss is necessary for forex trading, especially for new ones. Forex trading is a kind of short term busines, and very easily to be affected by sudden events, so stoploss is helpful to prevent your lost.

yes you need to know exactly how much of your capital you risk on each trade. how else can you know?