How much pip stop loss is good?

[mumuy]

Well, I’m always in trouble in knowing how much pip I should use to set my stop loss! But my stop loss according to my analyzing is too high than i can afford money to loss! So, please tell me can I put stop loss how much i can afford to loss, or it may be too risky?

Others say, it depends on your target profit. For example, if you trade GBP/USD with Daily chart, and your target is 100 pips profit, maybe you can set your SL for 50 pips. But if you do scalping with 15M or 1H chart, and your target is 30 pips profit, maybe you can set your SL for 15 pips or 20 pips. There are no certain rules of how many pips to set in our trading. I guess it's better if we practice it for ourselves, because each trader has their own trading style.

Any views on this?

 

[Enivid]

But my stop loss according to my analyzing is too high than i can afford money to loss!

How is that possible? If your stop-loss means too risking high money-wise, you simply decrease the volume of the position. That is the whole point of using position sizing methods.

 

[star081]

stoploss is good becuse in this way u donot loss ur whole account and u earn the dollers so do it and earn more an dmore

 

[Hubu]

The spotloss also depends of your lot size. the bigger it is, the closer sl needs to be. As for me, i prefer to use trailing sl 50 pips of the price.

 

[Enivid]

The spotloss also depends of your lot size. the bigger it is, the closer sl needs to be. As for me, i prefer to use trailing sl 50 pips of the price.

It is the other way around, actually - the closer SL the bigger can be your lot size. It is ultimately illogical to base your exit signals on your money management ideas instead of your technical/fundamental analysis.

 

[Master Forex IB]

I like 20 to 30 pips for stop loss. I do not set stop loss on too much pips where My loss will exceed. according to my capital and lot size I prefer to set it on reasonable pips where it not easily hit. My good analysis give me some profit. With hiirpose .gher pips for this pugh invest ment you can choose h

 

[ezrydn]

I don't use SL or TP because I never walk away from an active trade in progress.

 

[rwtc]

I think it is best to decide the stoploss size based on the chart and not based on money management. For example if you enter a long trade after a double bottom and the double bottom is 7 pips away, there could be no reason to place the stoploss 30 pips away if the third of that would be good enough as well.

 

[Rambo35]

One thing I would like to point out is that retail traders use a SL to close a trade at a loss while pro-traders only use a SL to close a trade for a profit.

 

[mumuy]

I think using a stop loss is very effective and mitigate the risk of loss in trading.

 

[Rockefeller]

Totally depends on trading strategy. I am using 10-15 pip sl. And if price moves my favoured direction then I will trail it tighter

 

[Emibluz]

Risk management in the forex is instrumental to good forex success since you can never tell the future. I prefer static stop loss. Practically, traders looking for a profit target AT LEAST a good distance as the stop-loss. So if a trader opens a position with a 50 pip stop, look for – as a minimum – a 50 pip profit target. This way, if a trader could win more than half the time, they stand a good chance at being profitable. If the trader is able to win 51% of their trades, they could potentially begin to generate a net profit – a strong step towards most traders’ goals.

 

[Rambo35]

I think using a stop loss is very effective and mitigate the risk of loss in trading.

I don't think you are trading for a living or a pro-trader which explains your point of view. I stick to my previous statement and speak out of experience.

 

[Master Forex IB]

I like more than 20 pips for stop loss it remains safe when market moves some pips It not hit stop loss . I set take profit too in trading , With good analysis I can make some sure profits and manage my loss with stop loss.Stop loss is alwas help ful when we are in a fear of unexpected loss, We can limit it on our prefered pips that are affordable for loss.

 

[ashu912]

see it depends on your capital what sl to place.. generally if you are scalper plave 15 pips and long term trader place 50-60 pips stop loss

 

[Enivid]

see it depends on your capital what sl to place.. generally if you are scalper plave 15 pips and long term trader place 50-60 pips stop loss

I just want to once again warn anyone from basing their SL on their money management rules instead of the actual market situation. That is a very dangerous way to determine your stop-loss.

 

[Agnnis bingamin]

Agree with Emibluz..risk is an integral part of forex therefore we need to manage our risk in such a way so that we can avoid losing our money.

 

[ddeeen]

I just set 20pip of my false trading....
It's preetty good job///

 

[eyeball]

Your stop loss point is a function of your win/loss ratio--bearing in mind that the closer your SL is to your entry point the greater the probability that normal volatility can take you out. If , for example, your expectation and experience indicate that you win 60% of the time with a 25 pip average win than 40 % losers with the same 25 pip average loss will still yield a very respectable profit over time.Obviously the greater the win % the greater the stop loss one could bear. Adjusting those numbers to real life experience as well as recognizing that certain trades are inherently more risky than others is the art and science of profitable trading

 

[Emibluz]

It is necessarily not how much stop loss is good but how good and strong you are at maintaining the stop loss when doing manual trading.