Importance of stop loss placement in forex trading.

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Originally Posted by yogesh

To be honest, I hardly apply stop loss to my orders I base my trades on support and resistance trading in trend direction - there are times when my trades are showing loss even 100 pips or more and soon returns to profitable level when market starts again after correction. But when i feel my anlaysis was wrong I use stop loss though i have to lose quite big amount but still find it wise as i save some capital to open trades on lower level.

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open position at a lower level is usually when the price is the cheapest or most expensive position, so the best option for us as a trader can take a position from which we execute this strategy in order to gain the advantages and disadvantages that we get back the previous

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.

Stop loss is the one setting with which we can peacefully go away from our trading terminal for other work that our account will be still safe if anything happens in market that is unpredictable and market runs opposite to our position. This is something like a protective gear like Helmet we wear during riding a two wheeler.

Yeas I like your post you written. Stop loss has a great importance in forex trading.
All forex trader should use stop loss ...I think.

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Originally Posted by Nusrat

I think stop loss is very important part of the business for this reason every trader should place stop loss during opening any trade other wise trader can fall in big loss in this market.

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Yes I agree with you, apply the stop loss in forex trading is one of good money management. If you do not use stop loss is your target profit is unlimited, but you are also not limited to loss as well. it may not be a problem if it has a very large capital and there is a chance prices will turn around. In forex trading, anything can happen, then the stop loss, you can manage the risks that might be obtained if the market price contrary to expectations.

Stop loss is very important in trading,because we canot always right in predicting the price..
All we can do just anilyzing the trend,and trade with strategies,,but strategies without stop loss can make us loss a lot..

So always put ur stop loss to control your loss..

it is very important stop loss placement in forex trading because if you control your mind from then you you can easily save from loss. if you don,t like to use it then a chance of loss will hamper you.

stop loss is good if they use it as well as they can and put it at the right track for their safety
some traders know about it and use it but some traders trade without SL too and they have the reason for it
and maybe they have prepared with some option to overcome the unwanted condition

and also it wll become a big problem if the SL is always touched by the trend

In my knowledge i think that stop placing is a very fundamental cipher which most of the traders need to discover and practice real wellspring in Demo account trading. Since there is no set way to do it exactly most of the people follow the way they property is fitter for them. I use turn points and funding resistance method for this.

Nobody can say anything for sure what will happen next in the forex market.. So actually you cant say anything with surety.. because this is the most uncertain market of all.. anything can happen and anytime.. this is why you need to ready for everything.. to protect your account there is no tool better than stop-loss in your trading..