Importance of stop loss placement in forex trading.

[tashnotashi]

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

app ki baat sahi ha par main app ko sahi batoun mugh ko na forex trading main na stop loss bilkul he acha nahi lagta ha kioun k main apni koi bhi trade loss par close nahi karna chata houn es liye main to stop loss use he nhi karta houn

[redstar]

right, stop losses are very important for your account. Stop loss will protect your funds, especially when your Open Position goes wrong. Stop loss avoid you from margin call, so use stop loss and good money management to success at forex.

[aak]

when new trader make their trade they not realize how many pips stop loss is perfect for their trade. it's the main problem for new trader. in this cause they leave stop loss.long time they trade without stop loss then it's make their habit.

[bdfx]

Is stop loss is not only it is everything and did not out over the stop loss in the dealings he is someone who does not deal to be the reserve is set to move the market in the website very quickly and we can not close the deal and the result is the loss of part much of the capital .

[ahmedi]

yes, use stop losses in the trade is very important. we will be able to calculate the risk of loss to the management that we have applied in the trade. by using stop losses, we do not have to worry about losing all our money if a loss in trade

Yes right as good trader he should note the above stated rules for success in trading in forex trade because there is one hundred percent accuracy because it has work out for me and some of my friends who engage in trading in the forex trade market. Do not forget that you must keep your priorities straight while you trade in the forex trade.

[darksaimon]

the stop loss is real key for the Forex trading, because the tiro's of the trading moldiness sense that Forex trading is really unhurried to earn the profit but when they free their capital in Forex trading then they expect that roughly the Forex trading indicator's and tools, so outstrip to use the trading indicator to forbid the trading capital.

[omer1]

indeed stop loss is very important in forex trading all the loss i have earned in forex is due to not stoping my loss tthinking market will return and my loss will convert into profit.so for me stop loss has much importance in trading.

[anoha]

Is stop-loss is not only important it is everything and did not put over the stop-loss in the dealings he is someone who does not care about money and wants to lose even if he is following the deal to be the reserve is set to move the market in the website very quickly and we can not close the deal and the result is the loss of part much of the capital ...

[puri]

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.

[aamu]

trading main stop loss bahut jaruri hai. stop loss set kar ke aap tay karte hai ki ham kitna loss le sakte hai.
hamara analysis sahi ho liekn ho sakta hai kisi news se market main opposite movement ho or jis ke kaarn hame badaa loss ho sakta hai.esi condition main stop loss hi hame bacha skata hai.