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I never use random pips.. I trade with a strategy.. and my strategy told me the amount I need to use as stop-loss.. I give my stop-loss at least 10-20 pips higher than the next resistance when selling and the same amount lower than the next supports level when buying... this tricks saved me manytimes.. because price actually reversed most of the time after reaching those levels.. and this kept my trades alive..
if we know when to start to enter the market, then we wouldn't have to set 100 pips for each of our positions. sometimes putting 20-40 pips on stop loss is more than enough on that both pairs.Quote:
Originally Posted by jutt
i determine my stop loss using support and resistance levels. so basically i agree with you.. but when the stop loss is lower than daily range average then i switch it by adding 50 or 100 or simply by using higher or lower support and resistance..Quote:
Originally Posted by Anytime
I agree that placing a stop loss depending on the level of risk we are prepared to bear.and I think a good place stop loss is smaller than the placement take profit,My reason is if we put the stop loss is smaller than the take profit,then if the accuracy of our predictions are 50:50,then we will continue to profit in the accumulation of the final result....Quote:
Originally Posted by Anytime
how many pips do i think is safe for sl .. its depend on the situation.. some times its 20pips or some time 50pips .. mainly i use the resistance and support line.. for sl.. and tp .. in daily chart basis.. the sl is min. 100pips or more .. when on the 1hr basis. its some time 20pips some times 50pips.. i use it but max . time u exit the market before its hit the sl.. very moment i was wait for the hit the sl.. because i use the moving average. so when any candle open above or below with a gape .. its signal that now price is going to down or flat.
I usually just put take profit 10 pips, but if I was having installing a new floating take a lot of profit in pips,,
and also just put up a stop loss, and the number of pips that I use to stop depending on the margins lose,,
the lower the profit we make the target I have confidence that it will get better in our of commerce so that way we will have the opportunity to make better of commerce and we also do not have the risk of major tradeQuote:
Originally Posted by leo
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.