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for my opinion the pip for safe SL depent of your money and the averge i can give you exemple if your personal balance is 1000$ and you enter a 10,000$ deal (10:1 leverage), the maximal SL point will be 20 Pips which equal 20$ (2% of 1000$) then play it safe do not risk over 2% of your balance.Of course that's my opinion :)
You are very correct, normally, we should place the stoploss at resistance and support levels, then calculate how much pips we will risk, then calculate how much we can trade.
The use of stop loss is a pleasure to insider forex and I think it depends on the style of your transactions scalpers use stop loss 20-30 and day traders using 50-100 seeds
yeah,i agree with @anytime sir that it depends on you how much amount you can afford to lose you have to put that and it totally depend on trader.
This is true that you should not set stop loss at more than you can afford to lose. But while determining stop loss you should consider few other factors as well, first whether risk reward ratio is good when you set stop loss at this level, and secondly is the stop loss you set is meaningful i.e. just below support level for long positions and just above resistance level for short positions.Quote:
Originally Posted by forexman
Yes.SL input depends upon the type of trading too.The ratio i told is for normal swing traders.
But For Scalping i always feel that one should never provide SL since there are lot of chances to get SL triggered since its a very small value.
well it depends upon the need.But always its not wise to have like this TP=SL.
For beginners i recommend 2:1 ratio.
if TP is 100pips have SL as 50pips.So that if you lose a trade also,atleast the last trade's half profit will remain.
yes we can use support or resistance for stop loss or even SAR also.
mostly i will use pivot lines for determining the Stop loss and Profit levels. they are really useful.
It is worth to use pivot points to determine your SL and Target along with good entry level. And i noticed there is often some found some support or resistance at these levels but i still like to watch market at my own and mark important resistance and support for my trade.Quote:
Originally Posted by anchitkole
yes,you are right.SL should be decided with Support or resistance and they act as good one to determine.Even pivot points are also good in determining.so one can put SL based on this or specified values like ratio of TP :SL as 2:1 like that.It depends on traders need.