Importance of stop loss placement in forex trading.

[Raees1234]

Importance of stop loss placement in forex trading.
FOREX TRADING: IMPORTANCE OF STOP LOSS PLACEMENT



A lot of traders do not believe in stop loss placement.
Some believe in mental stop loss placement. meaning that when they feel that a trade is not going their way, they will then cut it off.
That is so terribly wrong. Stop loss placement is one of the most crucial key if you want to make forex trading profitable.
Another mistake traders make is that they shift their stop loss. They shift it backwards, thinking that the trade will just go back a little more and will come back their way. And sure enough, most of the time, they took more losses than they would have if they stayed on their initial stop loss.
In the chart above, is an example of the importance of stop loss placement.
Usd chf h4
In the highlighted box, thats a pin bar. When some guys see this pin, they will naturally take it down and the ideal place for their stop loss is the horizontal line in orange that is drawn.
Scenario A) if the trader did not place a stop loss, or a mental stop loss � look at how high the usd chf pair went upwards. Their account will be blown or had a huge huge loss.
Scenario B) Trader shifted their stop loss backwards from the initial orange line thinking that the trade will go back down. They would have taken a huge loss as the move went up terribly fast and would have gotten a big blow to their account
Scenario C) Trader sticked to their initial stop loss, they would have just gotten a standard loss of the % risked in their account, based on their money management. And this is just one of the trades among the plenty, therefore this loss is not a big deal.
I hope you guys can see the importance of placing and sticking to your stop loss. Or else your account will be blown before you know it.

[asim00]

stop loss ki kafi importance ha agar hum isko use kartey han to hum apney account ko completely blow up honey sebacha saktey han kiyon agar ye na ho to loss bar jata ha

[Raees1234]

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Previously i have no idea about stop-loss. And then i loss a lot of money. Now i realize that if i use stop-loss method, then i probably overcome that loss. Now i use stop-loss and target profit both on my trading. And doing well in the market. Stop-loss basically minimizes the amount of risks or losses in forex trading. But if you invest decent amount of capital, then its your wish whether you use stop-loss or not. It is not that much necessary.

[ishvara]

The Forex business Markets possess the ability to be risky and Voaltile, That is where the importance of stop loss comes in. Stop loss aids a Forex trader to control and contain their losses in Forex.

[Raees1234]

loss.
In the chart above, is an example of the importance of stop loss placement.
Usd chf h4
In the highlighted box, thats a pin bar. When some guys see this pin, they will naturally take it down and the ideal place for their stop loss is the horizontal line in orange that is drawn.
Scenario A) if the trader did not place a stop loss, or a mental stop loss � look at how high the usd chf pair went upwards. Their account will be blown or had a huge huge loss.
Scenario B) Trader shifted their stop loss backwards from the initial orange line thinking that the trade will go back down. They would have taken a huge loss as the move went up terribly fast and would have gotten a big blow to their account
Scenario C) Trader sticked to their initial stop loss, they would have just gotten a standard loss of the % risked in their account, based on their money management. And this is just one of the trades among the plenty, therefore this loss is not a big deal.
I hope you guys can see the importance of placing and sticking to your stop loss. Or else your account will be blown before you know it.
Ezekiel Chew

[NaveedPK]

there is so much important if you make the order and you can not have the time to your trader and you want to left them for a long time then its good to use the stop loss.

[shinaforex1]

Stop loss order is the most important order that any forex market trader have to understand how to use in the forex market.it is easy to get into the forex market but to get in is not important than to get out of the forex market trading business

[prince0000]

yeh stop inserting may be a important issue that most of the traders got to learn and apply all right in Demo account mercantilism. Since there's no mounted thanks to couple precisely most of the individuals follow the approach they feel is best for them. i exploit pivot points and support resistance methodology for this.

[fxearner]

han bhaiya g es business ma losses ko control karnay k liyay ya trader ki buhat zaida madad karta hay , agar stop loss na ho tu phr hanara sara capital hameshs hi risk ma rahta hay aur hamay bada loss bi ho sakta hay .

HANJI TRADER NE agar stop loss nahi lagaya hota to usko yahan bahut bada losses ho sakta hai,trader ko ess business me dhyaan se soch samajh kar he kaam karna hoga,trader ko apne saare capital ka risk bilkuyl nahi lena chahiye aise me wo loss he kardega..

[kashifAS]

is very true, interesting information, with no stop loss means that we give an opportunity to market to take greater advantage of our mistakes, if we are running trading make it a habit to lock our trading profits to be healthier