Importance of stop loss placement in forex trading.

[reazforex]

At the starting time I have no knowledge in stop loss and take profit. But by studying many books and internet, I have some knowledge about stop loss and take profit. We should use these tools when are engaging in long term trade and not for scalping, it will help us for minimizing our losses.

[waqtitrader]

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

main manta houn k stop loss jo ha na forex trading main ye sab se he aham ha kioun k mugh ko pata ha k es main na ager ham stop loss use na karein to ham ko kafi loss ho sakta ha es liye main to es ko use karta houn ab or loss se basha rehta houn

[aamu]

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

[biyen]

Stop loss placement is one of the most crucial key if you want to make forex trading become more 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

[mbie123]

I had no idea about stop-loss. And then I lost a lot of money. Now I realized that when I stop-loss method, I will definitely overcome the loss. Now I use a stop loss and profit target on my business. A well in the market. Stop-Loss substantially reduce risks and losses from forex. But if you invest a fair amount of capital, it is your desire or your stop-loss or not. It is not so necessary.

This is also the experience, at first I did not use stop losses, and finally I lost a lot, and I realize that it is difficult to predict the price, the price will move according to his will, and finally I understand there's nothing definite on the market, then from that we must look for strategies that can be run with the market.

[rumiocat]

I wanna say to u all to learn Forex by a good and effective Book.It will also be good for u to learn Forex by vedio So go to this post link and u will find nice vedios there available https://indian-forex.com/showthread....ducation-Video .......I hope it will be very easy and nice to u.

[kalponick]

Nobody can say anything for sure what will happen next in the forex market.. So actually you cant say anything with surety.. because this is the most uncertain market of all.. anything can happen and anytime.. this is why you need to ready for everything.. to protect your account there is no tool better than stop-loss in your trading..

[riya]

In my knowledge i think that stop placing is a very fundamental cipher which most of the traders need to discover and practice real wellspring in Demo account trading. Since there is no set way to do it exactly most of the people follow the way they property is fitter for them. I use turn points and funding resistance method for this.

[aamu]

stop loss is good if they use it as well as they can and put it at the right track for their safety
some traders know about it and use it but some traders trade without SL too and they have the reason for it
and maybe they have prepared with some option to overcome the unwanted condition

and also it wll become a big problem if the SL is always touched by the trend

[bhai1]

it is very important stop loss placement in forex trading because if you control your mind from then you you can easily save from loss. if you don,t like to use it then a chance of loss will hamper you.