Importance of stop loss placement in forex trading.

[NaveedPK]

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

when we use the stop loss then in case of the price goes so much the oppositive direction then the stop loss help us by saving the total loss of the capital and its good to apply to save the capital.

[pbaudi]

My friend stop loss option is very important in forex trading and we need to understand the stop loss place because it will help us to be a successful trader. It is very important to find out a good TP or SL position on every trade.

[naziakhan]

The importance f the stop loss in Forex can never be underestimated in this great business. For me, It is important because it creates a clear way for a trader to control their losses in this business.

han bhaiya g es business ma losses ko control karnay k liyay ya trader ki buhat zaida madad karta hay , agar stop loss na ho tu phr hanara sara capital hameshs hi risk ma rahta hay aur hamay bada loss bi ho sakta hay .

[ishvara]

The importance f the stop loss in Forex can never be underestimated in this great business. For me, It is important because it creates a clear way for a trader to control their losses in this business.

[sayinifx]

Trade me agar hum stop loss lagakar chalte hai to wo firi hum loss se bach sakte hai aur hum ko hamesha market me apni loss ko contorl karke chalni hoti hai jab hum ess business me loss ko contorl kar lete hai to fie hum ess business me acche se samajh kar kaam kar paate hai ess business ke liye bahut important hoti hai loss ko stop karni.

[ashermaqbool]

stop loss aik acha tool hia aur agar aap forex mein new hain tu sab sy phlay forex ko understand kary is ky baad aap is business ki demo account par practice kary tab aap achay trader ban saktay hain aur is business mein success hasil kar saktay hain aur aap ko lalch sy avoid karna chaiye.

[bibo]

yes of course I think stop loss is a very wise step in forex trading stop loss because we can still count the possibility of returning a profit. to cover all the damages received. stop loss is basically a test of patience and psychological dala forex trading.

[usafi1]

stop loss bohat acha hia aur jis banday ky pass is bsuiness ka acha experince aur kwneoldge ho ga wo is bsiness ko join kar skata hai aur is bsuiness sy acha profit make kar sakta hai so yeh humary liye bohat acha hai aur is tarah hum is business par daily work kar ky bohat bari amount earn kar skatay hain.

[fivo]

well actually I believe stop loss is a very important thing forex trading but most of the newbies fail to use it effeciently even then them should be used the sl. Cause it helps an account from being nil. So use it everytime oneday you can also become useful to it.

[fxearner]

stop loss ka jo importance wo bahut he jada ess business me hai,sirf essi tool se trader apne loss par yaha control kar sakta hai aur loss control agar trader karleta hai to fir usko sab kuch yaha aage future me samajh aajata hai..