Is Stop loss a part of the Forex trading business?

SweetPrincess

Trader
May 9, 2017
117
31
24
42
Do you think stop loss is a part of the Forex trading business?
Based on my own opinion, I think putting a stop loss order is a very important tool in preventing losses and a tool for implementing risk management..
 

GazFx

Banned
Nov 13, 2012
478
69
74
61
Melbourne, Australia
www.youtube.com
Stops are a critical part of money management, provided they are placed at logical price points. For example, just below support for a buy position, or above resistance for sell positions. The stop loss can also be used to calculate lot size when combined with a given risk factor. For example, if a 2% risk factor is applied and this amounts to, say, $100 of account balance, and the stop loss value is, say, $20, then $100 divided by $20 = 0.05 lots. Hence, if the stop is hit your losses are limited to 2% ($100) of account balance.
 

Michelle Yeoh

Trader
Jul 9, 2017
83
10
9
44
Of course it is! Loss is a part of every business! In addition, if you don’t use stop loss trading tool in your trading that means, you are taking 100% risk reward ratio in your every single trade position, that is very unprofessional! Yes, I use SL and TP according to the market context!
 

JimTatum

Trader
Jan 28, 2017
40
6
14
30
SanDiego
Hi,

Based on your capital and its risk, you have to choose Stop Loss. It is difficult to predict the forex market. So when there is a news release and Geo-Political issues and war there is a chance for breakdown and then trade may reversed. So it is better to trade with Stop Loss.
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
32
Putting stop losses reduces the chances of the risk of loosing all the capital and those who cut their losses on losing trades makes good earning because chances of loosing becomes lesser than the chance to win.
 

David Smith

Trader
Jul 11, 2017
17
4
8
42
www.fxvps.pro
If you don't put SL on your trade, your account may go towards zero. So it is best practice to use SL on every entry. It will cut your loss from huge loss. So, it is requested to all traders to use SL for every setup to save the account from danger.
 

forexcheapvps

Active Trader
Feb 5, 2017
24
2
44
32
forexcheapvps.com
In forex, you must have SL. Without this, you can sustain in this business. So, you need to respect this as a part time business for you. This is best practice to use SL for every trade
 

Ary Barroso

Active Trader
Jul 9, 2017
908
70
39
34
Of course, using stop loss trading tool is very much important for a trader! By the way, traders have to select their SL level according to their analysis; using a fixed SL level like 20pips-30pips wouldn’t be meaningful! I set my SL according to the Support/Resistant Levels.
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
32
No body wishes to loose money however many of them don't apply stop losses and eventually looses all of their money and some of them looses more while chasing their lost money.
 

inggo

Banned
Jan 13, 2012
498
12
59
Philippinese
hahaha the titles is funny, i mean, do you think the option of stop loss is there for decoration or something, state the obvious, it wont be there if it did not have a function, and yes its essential though some of my trades on hotforex are done with no SL as long as traders know what they are doing
 

ashouq

Active Trader
Feb 21, 2017
167
14
34
32
Actually SL is there so that we can be able to cut our losses rather than blowing up the entire account. BTW good explanation, if it is there then it really means that it is there for some reason obviously.
 

Ary Barroso

Active Trader
Jul 9, 2017
908
70
39
34
Actually SL is there so that we can be able to cut our losses rather than blowing up the entire account. BTW good explanation, if it is there then it really means that it is there for some reason obviously.

To be honest, I have no negative impact on my SL; I think this technical tool helps me a lot to avoid unbearable lose in trading.
 

Marco877

Trader
Aug 26, 2022
14
2
9
42
Even, it’s the most obvious part! Money management is the main pillar here! And if you wanna sustain here for a long time, you should use the stop loss position with a proper game plan!
 

Fxbid99

Newbie
Sep 7, 2022
5
1
3
25
Stop loss helps in money management and minimising risk, provided that strop loss is placed at correct levels, and for that you need to be an experienced trader and should have a great market knowledge.
 

jimcarter

Active Trader
Nov 10, 2017
38
7
44
38
USA
Stop loss is an essential part of the Forex trading business. It helps traders limit their losses in a trade, and it can also be used to protect profits. Stop-loss orders are placed at a specific price point below the current market price. If the market price falls to that level, the stop loss order will be triggered, and the trade will be closed.
 
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Reactions: Glossy

Glossy

Trader
Aug 2, 2021
50
4
24
32
Poland
First, read about all the tools that MT4 provides and test them.
You might find a lot of interesting
 

Haruto

Newbie
Oct 26, 2022
15
0
2
45
Of course, I have never seen any successful trading system with SL! In my live trading always set my according to the position of nearest support & resistant levels! On the other hand, I am also so conservative on my TP positions!