Importance of stop loss placement in forex trading.

Stop loss is your best friend in the Forex trading. It is known that there is no trader all over the world who can predict the market 100% sure, and that is why when you male your analysis you have to insure your money of a big loss with the stop loss option

yes, use stop losses in the trade is very important. we will be able to calculate the risk of loss to the management that we have applied in the trade. by using stop losses, we do not have to worry about losing all our money if a loss in trade

Stop-loss is used as a trigger and the price level, which are traded. This price should be determined before the commencement of trading, when it opened vozmozhno.Stop loss is the point, accept the trade, "no questions asked." Stop-Loss will help you keep your trading capital to be able to act another day.

Stop loss will be important for many traders and it is vital tool to limit your loss. I am not using this tool these days and it is giving me better results. I wonder if I will stop using this tool in my future trading and just trade without stop loss.

use a stop loss in every trade that we go very epnting to avoid high risk if we are wrong in making predictions. It is a very effective tool to assist us in carrying out risk management well ....

Is certainly stop-loss is much more important than profit taking because, like collar Nagahvy case the market moves strongly and tens of points in a few seconds but the important thing is how to put it in the proper place so as not to price him up ...

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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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forex trading main sotp loss boht aham ha kuch log to stop loss ka baghar trading he nahi karta or kuch mara jassa jo sop loss ko passand he nhi kartay stop loss ko ya pata nhi muja ya stop loss bilkucl be passnad nhi ha es laya main na aj tak sop loss ko used he nahi ka q k muaja agr loss ho ja ya muaja passnad nahi.

stop loss is very important, because it can suppress all such risks, without a stop loss more quickly we will lose money, and we will not survive long in this business, because the forex requires good management, of the margin, risk, and possible loss of money. and it lies the importance of stop loss

Stop loss has as much importance in our trades as the target as the market can only move in either of two directions if not stable. The more we work to find out effective stop loss the safer we turn our account and trades.

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