If you had a SL in place, you could have went to the 15m charts after the loss and potentially traded the up-swing if you care to trade against the 4h chart. First rule of not losing all your account, use immediate SL when you enter a trade. . . .
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If you had a SL in place, you could have went to the 15m charts after the loss and potentially traded the up-swing if you care to trade against the 4h chart. First rule of not losing all your account, use immediate SL when you enter a trade. . . .
Thanks a lot for your article, today i learn a lot from this trade and i can use your idea in my next trading. I think stop losses is a policy in forex trading for all trader.
No matter what, the trailing stop loss should be used by a forex trader to stop losses that could come to them. It is a nice tool that we use to secure already made profits from losing more
stop loss is always a must for every trader. many a times it become the case that the market does not goes as per our pre judgement. in that case it is must to use stop loss properly in order to avoid any serious loss which can not be recovered. stop loss is used to stay with in the limit of our investment and allows us to overcome emocional decisions.
i dont inderstind this part ''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.'' ?????
The importance of stop loss level cannot be over emphasized, every trader who follows the right risk management rule would not trade without his stop loss in place when he opens any position to avoid any risk of loss and even margin call.
yes forex trade main stop loos ko use karna bohat aham hain stop loos ka use karne sa he humara account empty hone sa bach sakta hain stop loos ka use her surat main hona chayea ja bohat aham hain
Stop loss is a very important tool that every trader must be aware of. A trader shouldn't place a trade without using his stop loss if he wants to save his account from margin call. I have seen a professional trader lose his entire capital all because he failed to use stop loss for just one trade.
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.
This is one great importance of the stop loss, it would help to protect our account against loss and sometimes from getting a margin call, the more reason why we must ensure to follow money management rule to help guide us on how to protect our account again maximum loss.