Stop Loss/Margin of Safety
Jan 19, 2020 at 06:19
984 Views
14 Replies
Member Since Dec 19, 2019
69 posts
Jan 19, 2020 at 06:19
I always try to set my stop loss at 0.75%- 2% max of the account size ,if that's not possible at the time I wait for the next signal ,that's the great thing about Forex lots of opportunities ,you can apply this most successfully on extreme moves outside the normal movement of the trend ,BB indicator for example is useful for spotting these moves ,other patterns like breakout moves after long consolidation are a bit more tricky because it's normally a fast move with a -60% re test of the full candle then a bounce higher.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.
Strength and honor.
Jan 19, 2020 at 21:04
Jonny87 posted:Sure. SL isn`t invented just for nothing. 😉
Stop loss is very important. Because there is no trader who want to loss his capital much. Stop loss limits the loss. Every traders want to secure their capital. By using of stop loss a trader can trade in the forex market without any tension. I am also a trader. I am currently trading with Tpglobalfx. I always use stop loss while I am trading in the market.
momchil_slavov@
Member Since Jul 23, 2020
869 posts
Aug 30, 2020 at 15:18
Marketmultitool posted:That’s a good strategy. I prefer trailing SL in breakout trading. I usually take 1-2% risk per trade.
I always try to set my stop loss at 0.75%- 2% max of the account size ,if that's not possible at the time I wait for the next signal ,that's the great thing about Forex lots of opportunities ,you can apply this most successfully on extreme moves outside the normal movement of the trend ,BB indicator for example is useful for spotting these moves ,other patterns like breakout moves after long consolidation are a bit more tricky because it's normally a fast move with a -60% re test of the full candle then a bounce higher.
If I miss the initial move I wait for the re test to prove the trend is functioning normally.
I move my stop up to break even as soon as I see a re test higher ,there are lots of fake moves in forex so wait for those re tests and don't be afraid to start taking profit or at least break even ,it means one side wasn't willing to pay higher and next time they might have to if they are low on that currency ,most daily moves on the Major pairs have limits so always be ready to jump out when you see weakness ,it takes news or data to start a trend until that news changes.
I would be interested in hearing other Traders view points and what works for you.
Sep 01, 2020 at 14:53
We can't put stop loss just by percentage. Stop loss should be based on your strategy and where the next support and resistance level is. You also need to consider your take profit and what is the possibility of hitting the take profit.
Sep 01, 2020 at 18:39
In fact, I don't understand traders who don't use stop loss. These are the basics of risk management. It's good that you use it, you have a good strategy. Everyone puts a stop loss for himself, under the parameters of his account, and this is a good approach. Trading is usually unpredictable and you can't always keep track of a deal, without any breaks or something. Sometimes it only takes seconds for the price to drop dramatically, which is difficult to predict. For these and many other cases, you need to put a stop loss)
Member Since Jul 20, 2020
341 posts
Sep 01, 2020 at 18:50
Stop-loss is a very important tool for new traders in this market. Because it helps a trader to control their losses.
Member Since Jul 23, 2020
759 posts
Sep 13, 2020 at 11:33
Stop loss is essential to minimize risk. Forex is risky market. So, placing a safety pin in trade is a good trading approach.
Member Since Jun 30, 2020
17 posts
Oct 23, 2020 at 05:15
In order to put a limit on your losses and to keep a check on your profits, it is important that you consider stop loss. It is rather advantageous.
Member Since Oct 07, 2020
24 posts
Nov 05, 2020 at 07:34
In order to put a limit on your losses and avoid them, stop loss can be effective for trading. A lot of traders use stop loss to limit the possibilities of their loss.
Member Since Aug 24, 2020
13 posts
Nov 05, 2020 at 15:39
To become a successful Forex trader one must have a solid money(risk) management.
Here is money\risk management guideline
Take Profit = ATR x 1.5
Stop Loss = ATR
Risk per Trade = 1%
Max Open Trades = 5
Lot Sizes = mini or micro
I use 'pos_size’ indicator via MT4 to calculate my SL & TP and get my ATR
Here is money\risk management guideline
Take Profit = ATR x 1.5
Stop Loss = ATR
Risk per Trade = 1%
Max Open Trades = 5
Lot Sizes = mini or micro
I use 'pos_size’ indicator via MT4 to calculate my SL & TP and get my ATR
Be more financially free then yesterday.
Nov 11, 2020 at 06:10
SofieAndreasen posted:
Stop loss is essential to minimize risk. Forex is risky market. So, placing a safety pin in trade is a good trading approach.
Yes I completely agree with you. Stop loss is important in trading as it closes an order automatically once the price is reached at a pre-specified level. It prevents large and uncontrollable losses in volatile trades. It is a basic risk management tool and a good strategy especially for beginners.
The more your practice, the more you learn.
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