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Originally Posted by TRADE
as long as you are aware of the amount you could potentialy lose by not cutting your losses, either with a stop or not.
just manage your risk, trade an amount that if the market did move against you x amount of pips you are comfortable realising a loss of this amount, if you had to.
trading with a no stop loss and being in a losing trade not comfortable with the amount of money that is diminishing from your account equity and hoping that the market will come back is an utter disaster.
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Yes, agree in general with what you write. The difficulty is to define the stop loss point. This very much depends on money management.
I seldom use stop loss but when "thing go wrong", I hedge. The important is to manage your available margin to have enough money to hedge the current positions when I need to do it.
Could some one tell me how to define stop loss? I have problem with this thing. Set SL too tight then it will be hit very frequent so you have many small losses , set SL too far you have few big losses. Either ways can make you loss a lot in long run.
Any idea?
CuongVC