Importance of stop loss placement in forex trading.

[moonletter]

Yes forex trading is very risky if not using a stop loss, even if your target is an unlimited profit, but you are also not limited to loss anyway, it may not be a problem if it has a very large capital. But for traders who have little capital then the possibility is always looming Margin Call. To prevent the loss that is too large, then always use a stop loss.

[anoha]

Stop-loss is certainly much more important than anything is to take profit .. and must know how to put it in the right place until the price reaches him to not only rarely
Lifeline is like when the market moves very quickly because of strong or news from a lot of liquidity does not use stop-loss order is certainly will lose

[shemozz]

I can not I trade without the use of stop loss, stop loss is very important for any trader to keep his money, and to identify a certain percentage in case of loss, and this works to control the emotions as well,, so I think it's very useful for any trader should not be do without

[Maham Gill]

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

yar ap na to boht he achi or best post ke ha muja ap ke ya post boht achi lagi ha or yahan tak raha sawal trading main stop loss ka or take profit ka to ya boht he ak ahci ro best opportunity ha trading main ap ak to boht sara loss earned karta ho ro satah sath ap boht sara profit be earned kata ha trading sa...

[nazia]

Forex trading market have so much variation up and down and nobody knows where market moves up or down, to judging the market trend is so much difficult so you want to avoid your capital from loss then you should be use the stop loss which is so important for your trading.

[dmambi]

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.

It is human psychological which does not accept the loss and defeat as easily as we think, so traders keep thinking that price will come back, and some times it will come back and i have experienced it. If that is the situation we can use Hedging in place of stop loss.

[moonletter]

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

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.

[hamadmuneer]

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

[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.

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

[mbie123]

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.

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.