Importance of stop loss placement in forex trading.

[kiran]

main aap se shamat hu. forex trading main stop loss bahut jaruri or important hai.
lekin ye kbi kbi trading strategy par bi depend karta hai. kuch scalping karne waale trader to stop loss use ni karte hai or kuch long term trading karne waale bi stop loss ka use ni karte hia.

[nobby]

There is no gainsaying about the importance of stop loss. For any trader who does not use stop loss, it means that they have not tried to be greedy at any time and as such have not faced margin call. Trading without a stop loss exposes your account to unnecessary risks which should naturally be avoided.

[hanna]

May be stop loss most important for beginner.
This is one of the most important methods for forex market risks management. Stop loss orders.
One of the other methods of managing risks in forex.

[mage]

Stop-loss has many functions in the Forex One of the most important of these things that take advantage of the stop-loss it is one of the most important tools that support them rolling in the management of money and do not Iike that money management is difficult and requires a lot of study

[sitiz]

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.

Right, stop lose our aim to prevent the escape of MC as a stop lose is going to lose the settings are not going to spend the margin that we have and thus can be more lasting in forex

[adeusi]

in my first experience is trading i don't normally use stop lose and so when i trade at time i lose more than expected because i don't normally prepare for losing but i found myself in losing all my money in just one trade. but if you use stop lose youcan still trade with the remaining money left for you in another time.

[william88]

Stop loss is really important thing in trading..
Before i never put my stop loss in trading,then after i win 5 times,only 1 times i lose,but when i lost,i lost all the gain in 5 trade..
thats why it is important !

[s.chandna]

Stop-loss is very important for the currency dealing, because the first timers of the dealing must feel that currency dealing is very easy to earn the revenue but when they reduce their investment in currency dealing then they think that about the currency dealing indicator's and resources, so better to use the dealing signal to save the dealing investment.

[mukta]

Using stop loss is very important in forex.If you use stop loss than you save your account from unexpected price movenent of wrong direction of your trade.

[Abu Bakr Siddique]

FOREX TRADING: IMPORTANCE OF STOP LOSS PLACEMENT



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

Placement of stop loss in Forex trading is very important if you have poor capital & it will be help you to minimize your loss, otherwise you may lose your whole capital.But if you have a decent capital then it is not so much important to fix stop loss.