Importance of stop loss placement in forex trading.

I know that how much important to stop the loss placement in forex trading. In the first time learn about defense against loss.
I wish all of you guys happy trading... and best of luck. :D

It is an order placed to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. So if you set a stop-loss order for 10% below the price you paid for the security, it will naturally limit your loss to 10%. This strategy allows traders to determine their loss limit in advance, preventing emotional decision-making.

Let me take you through some key lessons on stop loss placement so that we can guard ourselves from large losses in forex trading.

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Originally Posted by rihabrahouba741

The stop losses are very important for your accounts.The Stop loss will protect your funds, especially when your Open Position goes wrong and the stop loss avoid you from margins call, so use stop loss and good money managements to success at the forex !!

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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.

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Originally Posted by asiaforexmentor

FOREX TRADING: IMPORTANCE OF STOP LOSS PLACEMENT
http://www.asiaforexmentor.com/webpages/stoploss.gif


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.
Ezekiel Chew
Asia #1 Forex Mentor from www.asiaforexmentor.com

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stop loss trading main ak boht he ahci or best strategy ha muja ya strategy kafi ahci or best lagti ha esi waja sa agr ap na boht he ahci or best trading karni ha to ap trading main zada sa zada stop loss ko used karna q k agr ap ko loss ho to boht he kam loss ho boht zada loss ap ko earned na ho .

the traders can see the good opportunities from forex with easy but some of them will get a hard way to get it, and this is caused by low discipline for it. Profit opportunities in Forex is excellent but to profit in this business is not easy, it involves a lot of factors before one can really master the art of trading, but only those that don't give up will be victorious.

stop loss is the best thing in forex to protect your account from white wash. i you do not use stop loss you can be out of the market for ever.
also use the stop loss according to your strategy and money management. do not put the big stop loss

Very important think in Forex treading is Stop loss.When a beginner feel Forex treading easy to earn maximum profit but he/she loss her/his capital in Forex treading.When he or she use stop treading system he or she will not his or her capital.

yes, the biggest mistakes trader do is not use loss stop , and i wonder why they did not
use it , it can protect our account from big loss so we exit from the trade in suitable time

i think stop loss setting is very important in forex.some trader say,stop loss should be 50 pips or some others say 30 pips.but, i want to say, stop loss should be set according to market situation which prevent the capital.

Forex trading main stop loss bahut jaruri or important hai.Lekin ye kbi kbi trading strategy par bi depend karta hai. kuch scalping karne waale trader to stop loss use ni karte hai or kuch long term trading karne waale bi stop loss ka use ni karte hia.