Importance of stop loss placement in forex trading.

[kike]

Originally Posted by pon

I am saying, if we understand the trend direction with the right combination of tools, there is no need to use stop loss.

There are clear signals before any price spike, always. And prices do not move randomly at all.

I disagree with that. When you analyze the currencies and you are about to open a position, you might believe in the trend but you can never know if it is going to be a winner or a loser. That is why you need to know what your stop loss level is. Eventually, if you have 60%-70% winning trades with risk reward of 1:2 you will win the markets constantly.