Importance of stop loss placement in forex trading.

thanks a lot for sharing your experience and knowledge about the importance of the stop loss and i plan to make it habit to place the stop loss with each trade in forex.

i believed that when you can not decided the move of market so at stop loss point the money that chose or risked to loss will clear out and you will loose that trade and also you will loose you capital . then use stop loss but it many be help for beginner it cover the big risk. so it is better to study and then trade as it helps.

thanks very much for your clear picture and know i know most newbies can know the very important of the stop lose so that we can learn the very best way to protect our account and the take profit always get go a long way in taken the profit we can earn in the forex market i just hope all newbies can gain one or two thing from this

I beg to differ on stop loss. But i think pacing stop loss is a matter of your trading style. I know of many big time successful forex traders that have been through the style of placing stop loss and later decided according to their trading stlye what is better for them. They trade without stop loss cos they mainly trade big time frames and have made up their minds that making losses is also a part of trading as long as your losses are very few while your gains are much more and bigger. Some scalpers that are experienced also trade without stop loss and still make it. so in essence one cant say its wrong but it depends on individual trading systems.

Trading forex market is very risk, so for us to avoid unnecessary losses we must find way setting blocking our money by the usage of stop loss strategy. It help us to limit our risk of loss our precious seed.

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Originally Posted by weaddads

the last day of the week, are you see the price movement? i lost more than 173$ in my two trade. and it is the cause of not in use the stop loss. for this reason i understand that a trader need to choose the lot size and also the S/L for safe trade. and for this reason a trader can trade be with safe.

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Iuntuk reduce the risk of large losses is to use Stop Loss, because eventually if we do not miss watching the movement of the market if the loss will be covered in the SL and the losses can be minimized, but we must also take into account the SL really is will not until we got SL first before profit

well i think you are very correct the more we get use to the stop lose the more we can understand the very best way to protect our account i know this will surely go a very long way to the newbies because with stop lose we can always be at the save side in the trading and we can trade with our mind at rest

If you have even as little as 200 dollars, you can trade with the smallest lot sizes and never care to set a stop loss. You will always be on time to close the trades if you are losing more than you can carry.

I think every trader should use stop loss . It will help a trader to make huge loss . Stop loss is most important for those who who trade in long term or sewing trade . For sculper i think do not need to use stop loss . Besides stop loss we can also use take profit .

I know it will be sad if it hit our stop loss because our balance will decreased but it's better than losing more, just forget about market will reverse and make our floating minus becoming profit.
We must learn to find a good entry and not for hoping market will reverse and floating becaomig profit.