Importance of stop loss placement in forex trading.

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Originally Posted by DBS

in forex trading a forex trader should aim at maximizing the profit and minimizing the loss so that you can get succesful. during this effort stoploss is amazingly imortantant issue that a trader should use. smaler or bigger capital regardless of on should place a stop loss if one has giant capital she or he could use bigger stoploss to firmly aviod any demage to firmly his account

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Put SL and TP based on stting your target, if i give much time in forex i can earn more money also learn many thing about forex trading business as profitable business, so need time to give in forex

trade in forex, actually the most important is Stop loss . because we didn't know , where price go untill. I'm agree with this thread , most of people success in the first use system no stop loss . but the end of they trade they will meet MC :)

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Originally Posted by ken arok

stop loss is useful to limit losses

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I strongly agree with this one, the stop loss is great for brake loss. that loss is not enlarged. that loss could be in minimalisir. so, the SL is one of the strategies using in order to lay off when price reverses direction from the predictions. but market volatility can only move just touching the Stop loss and then return to the path of our predictions. It makes traders disappointed, so in addition to the stop loss it will be good if you use the Take profit too, but don't make lot TP so quickly moved if prices are moving sideways.

Yes, chances that will be but still depends on the trader how he can monitor and read the market well. We know some don't use stop loss and they can still have good profit or even better because of their capability to analyze the market efficiently.

placing stop loss is the most important thing in forex trading in my view.people put stop loss but need to keep in mind that those stops should be place in right place so that it wont eat your profit.you need top have a good idea about support an resistance to place stop loss correctly

a stop is very important when it comes to forex trading i know that the stop loss is the best way to make the money and that way i know i will keep on making it through protecting my account.

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Originally Posted by mbloo

protecting my account

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Yes you are right, protection from MC is important one of them is by using a Stop loss. so as a guardrail when price reverses direction sharply.

i think stop loss in very importand for us, because with stop loss we can avoid our balance going to margin call, but when we have huge of fund we can trade without stop loss. but must be use good of MM well.

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Originally Posted by Forexer

Yes, chances that will be but still depends on the trader how he can monitor and read the market well. We know some don't use stop loss and they can still have good profit or even better because of their capability to analyze the market efficiently.

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stop loss will amke trade safety and make capital not loss in big trader, in the Forex trading is a great risk to avoid losses and calculate losses and always be careful with the capital and appropriate management of market risk and trading account capital management

Problem right now is that I do hedging and I just close 34 of my sell position in eur/usd and maintain 30 buy position. But then its price goes down 25 pips down. So what happen is that I open 20 sell position, guess what happen? its goes up to 30 pips already and I feel at loss right now .Now I have two position buy and sell that is in negative. But still I still do believe in my strategy. Its an acid test that I need to take.