Does having a fixed Stop-Loss and Target Helps?

[mumuy]

Do you think a fixed stop-loss and target can help in the long run? Say you had a fixed stop-loss of 20pips and a fixed target of 40pips. So you lose 20 dollars on a standard lot when the trade goes against you, but when you profit you cover your loss and again an extra 20dollar. Placing always a stop loss and take profit immediately when you open a trade it can always is good for your trading career. Also if the profit is always bigger than the lost then you are in the right track. All strategies should be like that.

I have fixed stop loss but I always move it up to break even if need be so I do not end up losing what I have gained. But I do not like to pull it down because I always end up losing more. The worse I can do is monitoring it and pull out early.

 

[hayseed]

Say you had a fixed stop-loss of 20pips and a fixed target of 40pips. So you lose 20 dollars on a standard lot when the trade goes against you, .

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standard lot usually runs 10$ a pip or more..... so might should be 200$.....

having a set stoploss or a known maximum drawdown allowed seems to help me..... the profit target is usually flexible.....

using any sort of fixed ratio such as 1:2, risk to reward, has never been a positive for me...... but we all trade different so it might be perfect for someone else.......

nothing helps more than assuring myself that the trade will not hit the stoploss whatever it might be..... if i do not feel confident, it's a trade never taken.....h

 

[Fxpipper]

Yes, setting up SL is essential to limit drawdowns and you can always set up a trailing stop, which makes more sense..

 

[rrayne20009]

I think stop loss is very useful for us newbies because we might not be aware that we're losing away our investment with going long and making bad trading decisions that's why we should use stop loss to help our accounts from being blown-out.