Importance of stop loss placement in forex trading.

We place stop loss to limit the risk and loss and we should make good use of this tool. The wrong use of SL can make your account to sink by placing stop loss too tight will get your trades hit it easily. We must give some decent margin to to our trades before it hits our SL.

In forex you can blow your account even in an hour..!!! So whenever you trade there will always a big risk that you are gonna lose your entire account.. this is why we use stop-loss in our trading.. So that we dont need to live with fear anymore about losing more than we can afford.. Stop-loss will ensure a sound sleep..

there are many traders who even don't know what should be SL and what should be TP. This sheared picture help a lot to know the places of SL. But it is recommended that for M5 SL should be 40-50 pips

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Originally Posted by kalponick

In forex you can blow your account even in an hour..!!! So whenever you trade there will always a big risk that you are gonna lose your entire account.. this is why we use stop-loss in our trading.. So that we dont need to live with fear anymore about losing more than we can afford.. Stop-loss will ensure a sound sleep..

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yes that is right, it happened to me too. That is why stop loss is very important, because it depends on using your risk reward ratio, and it is only advisable to risk only 2% per trade. so stop loss is needed in every trade that you open. we must learn to accept the loss because even the best traders lose too.

You are doing something really good by placing a stop loss in your trading and you are maintaining your risk in well order. I think if you can increase that risk factor to 5% it will be alright and you will be giving yourself a good chance to make more profits.

app ki baat bilkul sahiha kiounk main khud bhi stop loss ko kafi ahm samghta houn forex trading main app ager apne account balnce ko bachana chatey ho to main app ko yahi kahoun ga k app es main stop loss lazmi use karo

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Originally Posted by vanigota

Before i also dont use SL because of thinking price will come to my point but many time i prove not correct because price come in that palce but to blow out my account and after that many time i always use now SL to protect my fund and keep my loss in certain level. and for this its very very necesary to use sl.

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This is true, many professional traders are advised to always use stop loss, and according to them, we could not use the take profit and leave more profit, but to use stop losses is mandatory.

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Originally Posted by xiaotanghao

Yeah,you are quite right there.It is so important for us to place a stop loss when we trade in forex.With a stop loss in forex,you can just leave your orders there.With a stop loss,you can avoid losing so much,if your analysis is wrong.

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True, stoplose very important in forex because the stoplose is actually the way we secure a margin so that no MC, many people realize how important stoplose after they had several times MC, stoplose that we are so protective margin trading without stoplose never otherwise to fatal consequences

je haan app ne aik bohat faida mand baat batai hai hum log stop loss ko ziada ahmiyat nahi dety aor
aik time pe lose is had tak ho jata hai ke hum apna account he kho dety hain main be pehly kabhi stop
lose nahi lagata tha lakin aj ke bad aisa zaroor karon ga

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Originally Posted by sitiz

True, stoplose very important in forex because the stoplose is actually the way we secure a margin so that no MC, many people realize how important stoplose after they had several times MC, stoplose that we are so protective margin trading without stoplose never otherwise to fatal consequences

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yes true.. a lot of traders who do not use stop loss in the hope there will be price reversal after a floating minus, but the fact is even the price never went back and closer to the MC. So always use SL for your security.