Stop Loss poll

[CuongVC]

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.

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

[LogicRules]

If you don't use stoplosses, be sure to hedge. Don't trade with a broker who does not allow hedging.

Even FXCM allows hedging now.

[LogicRules]

Originally Posted by smitht7993

So what happens if your PC dies or you loose your connection!

Always use a stop loss!

Loss of connectivity is a real risk for online traders. But you can always call your broker in such an event.

[CuongVC]

Originally Posted by LogicRules

If you don't use stoplosses, be sure to hedge. Don't trade with a broker who does not allow hedging.

Even FXCM allows hedging now.

That's what I am doing. Instead of using a stop loss or manually close a trade with a loss, it's better to open an opposite order (hedge) so that you will not have too many small losses and reduce the cost due to spread.

With this approach, the money management is critical, we need to have enough available margin to open the hedge position.

Happy trade!

[lootsofpips]

Originally Posted by LogicRules

Loss of connectivity is a real risk for online traders. But you can always call your broker in such an event.

I believe OANDA doesn't allow trading by phone. So, if you loose PC connection you can't close position by phone. Am I right? Info, please.

[forex4freelife]

I found a company that uses a calculated stop on every trade I have to say if you are not following a certain set of rules before each trade then you will never be profitable over time (speaking from experience) I finally broke down and learned a system and now i'm finally trading in profits. here is a link to a great Forex Webinar. click here

[stu70]

Guys - remember that brokers encourage stop losses of 20 - 40 pips from your opening price. Thats the key to them making money when you get stopped out. You must allow for daily noise/volatility as price moves in waves and by putting a stop loss so close to your opening price your capital will be eroded eventually.Trust me, I was also a newbie. I always place my stop loss 150 pips + allowing enough breathing space to trade and to cover just in case a country gets Nuked etc......

[karcheos]

Stop loss is an EVIL (for me). However, you need large capital and no leverage to do this.