Do you use stoploss?

If you use high leverage stop loss is a must however the rule of thumb is that it has to reflect % of capital you can afford to risk per trade. If you set 1% then using pip value of your trade your can calculate to size of stop loss. Or using the size of stop loss you can instead calculate position size. Basically there are only two approaches to determine risk - signal-based or based on the amount of money you can afford to lose.

Hi there,

I use sell stops as stop-losses (SLs) for buy orders, and buy stops as SLs for sell orders. This is because the market moves between levels, and by closing my trades on supply and demand areas, I can manage my risk and avoid losing money in any direction.

For example, if I buy a stock at $100, I might place a sell stop order at $95. This means that if the stock price falls to $95 or below, my order will be triggered and the stock will be sold automatically. This helps me to limit my losses if the market turns against me.

On the other hand, if I sell a stock short at $100, I might place a buy stop order at $105. This means that if the stock price rises to $105 or above, my order will be triggered and the stock will be bought back automatically. This helps me to protect my profits if the market moves in my favor.

I find that this strategy is a helpful way to manage my trades and avoid losing money. It also allows me to participate in market moves in both directions, which can help me to increase my profits.

Again, this question itself is a self-suicide note for Forex Trading.

First of all, people use Stop Loss because they open the position with crazy lot size. They are afraid of Stop Out; therefore, they use stop loss.

No matter how disciplined you are using Stop Loss, you can never win a game designed for you to lose. Let me ask you this: what is the brokers' source of income? Spread? Then you are very naive. Spread is the mechanism to ensure that the brokers have an edge against intraday traders, and the overnight fee is the system for brokers to have an advantage against swing traders.

If you use stop loss, there's something wrong with how you trade Forex.

I often cut loss my lousy position, but I have never felt worried that the market would beat me.
This is Forex Major Pairs, not some junky stocks or Crypto that could jump all the way up and down.

Even the most disastrous event, like CHF in 2015, didn't bother me.

I often mentioned this. If someone exchanged their USD for Swiss Franc in 2015, would they go bankrupt? But why in Forex Online Trading many collapsed?
Forex is slow, and people who lost their money are just gamblers with unreal expectations. They provide liquidity for the brokers.

Trade forex with sanity!

Of course, the most important thing for me, allows me to sleep well..

yes, becauzd it allows me to locking my gains.

I use stop loss because I'm scalper without that I would burn many accounts lol

Hello,


Firstly, I appreciate your perspective and it's always interesting to hear how others approach the market. I do, however, have a few points I'd like to share:

1. Using Stop Loss: While it's true that some traders may use stop loss orders because they open positions with larger lot sizes than they can handle, there are many other valid reasons to use them. For many traders, a stop loss is a risk management tool. It's a predetermined level where they've decided they were wrong about the direction of the market and wish to limit their losses. It's not always about the fear of a stop-out.
2. Brokers' Source of Income: Spread, overnight fees (or swaps), and commissions are indeed some of the ways brokers earn money. While it's essential to understand the broker's role, it's also vital to choose a reputable broker to ensure fair trading conditions.
3. Forex vs. Stocks/Crypto: It's true that the forex market is generally less volatile than many individual stocks or cryptocurrencies, but it's not devoid of risk. Major geopolitical events, central bank decisions, and economic data releases can move the forex market significantly. The 2015 CHF event is an example of how unpredictable the market can sometimes be, and it's a reason some traders use stop losses - to protect against unforeseen events.
4. Trading vs. Gambling: I agree with you that one should approach forex with a level-headed strategy and realistic expectations. Those who treat it like a casino game are bound to face challenges. However, using stop loss doesn't necessarily categorize someone as a gambler. It's a tool, and like all tools, its effectiveness depends on how it's used.

In conclusion, while we might have different approaches and beliefs about the market, I think it's essential for all traders to share, learn, and grow together. Thanks for sharing your perspective, and happy trading!

1- No.
2- I play small, so the risk is low for incurring the loss. In another instance, prices could jump back to give you some profits. But when the loss of that opened trade goes past 5 percent with no sign of revival, I manually close the trade.

Yes, I always use a stop-loss. Even when I was trading 0.01 lots or on demo I did, because I wanted it to become a habit to protect my capital and limit my risk.

1. Do you use stoploss or not?
- Depends- on what chart timeframe I am trading- for me it is 1Hr or 1Day

2. Why do you use stoploss and why you don't?
- Spreads can fluctuate a lot with brokers during period of low liquidity- and i often find this the case on shorter timeframe chart- including 1 hour chart. Many a times, this has taken off my winning trades with trailing stop loss as well- when the price has never hit the level. However, I am comfortable setting a stop loss when trading the daily timeframe. I use Volatility/ATR to set stop level.

3. How many pips do you use your stoploss?
- Depends on the instrument current ATR. I set it at 2 times of the value. Eg, If ATR on GBP/NZD is 0.01500 on a daily chart, trading at a price of 2.12921, I will set my stop at 2.15921 when going long. For short, i will stop at 2.09921

Any feedback appreciated which will help further optimise.

Yeys.

Using a 3 to 5 rr works for me. So, it helps with keeping profits running.

Rule simply is. Trade, let it go, then be. Then check it next day.

I do not use stop loss, because my leverage amount is very low and the systems I use in the opposite direction turn automatically.

Praying and hoping is the only way to succeed in this business.

Whether to use a stop loss is a decision that depends on an individual's trading strategies and risk tolerance. We strongly recommend placing stop loss orders though to avoid bigger-than-expected losses.

The primary reason for using a stop loss is to limit potential losses on a trade. It's a crucial part of risk management, helping to ensure that losses remain manageable and within the trader's risk tolerance. Without a stop loss, a trade could theoretically result in substantial losses, especially in highly volatile markets.

As for the number of pips for a stop loss, it greatly varies depending on the trading strategy, the volatility of the currency pair, and the trader's risk tolerance. Some traders might use a tight stop loss of 10-20 pips for short-term trades, while others might set a wider stop loss of 50-100 pips for longer-term positions. It's important to consider the historical volatility of the pair and your overall trading plan when setting this distance.

No.

Why?

Forex is rigged and your stops are hunted so it makes sense not to use a stop.

U have to establish a stop before any entry, but u dont need to place a stop loss order. there s a big difference. No need to give an advantage to your "enemies" in the market.

Then what instead?

It makes sense not to use a Stop Loss, until one day, your trade is so utterly wrong, that the market runs right against you, and simply doesn't look back, and you either bail out at an orders of magnitude higher loss than you intended, or you hold out through thick n thin, and maybe it comes back, eventually, or maybe you blow your entire account.

Either way, terrible for your mental stability / mindset even if you get away with it. But if you don't get away with it, then you blow your account.

With that said, I am very open to the idea of placing your logical trade, and then moving the SL well the fuck away from the logical SL, but taking a trigger of the logical SL, as time to exercise damage limitation and try and get the fuck out. But likewise, often you will get out at either scratch or at a much lower loss, but every so often, the market will just keep running against you, and you end up losing 2-3 times what your intended risk was.