The importance of using a stop loss

mumuy

Active Trader
May 3, 2013
193
4
27
Using a stop-loss in your trading strategy is highly effective. You need to consider certain currency pair’s volatility and then set your stop losses according to it. If you’re SL (stop-losses) is too small it will cause a lot of series of small losses! That can result into a big one loses. SL is for avoiding you lost in your money deeper n deeper. But I often not use SL because I know the risk so I facing it up.


Stop loss help us to protect our capital. Without stop loss i do not think there will be any trader i mean any forex trader in this business, forex is a business and any business that do not have stop loss is not a good business. I think every trader of forex market have knowledge about the importance of stop loss. This is a really good strategy to stop our losses in forex trading. We can earn more profit by using stop loss. We should use this strategy.
 

mehulsoni

Trader
Jun 21, 2013
9
0
22
Gujarat, India
Stop loss prevents our capital from losing more and help us stay in market for long. By putting stop loss point, we are informing our broker that we cannot afford to lose money if it hits the certain limit or point in unfavorable direction. If you are not using the stop loss properly then you are not trading but gambling. Stop loss is a very good option for protection against the immediate heavy price movement of currency pair. We can define an accurate stop loss point by having a good analysis of the market...a stop loss point which is going to hit in rare case .There are different ways to identify the support and resistance level to get the proper stop loss point, just like daily pivot points, Fibonacci levels etc.
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
17
32
Canada
Retail traders and professional traders use a stop loss in a different way. Retail traders always place a stop loss to close a position at a loss and often place it very tight. It depends on your strategy of course. It is a good tool, but a tool is only as good as its user.
 

Fxpipper

Master Trader
Oct 26, 2011
1,132
2
49
Of course a SL is essential, that's a given but there are traders who prefer to trade without SL..either way, would advice all traders, especially new, to use the SL effectively..
 

satriafx

Banned
Oct 7, 2013
34
1
0
heaven
SL is very important to minimize our huge loses when the market against us..
So, it's recommended for all traders in the world to must use SL..
While i'm trading in Liteforex and some others broker, i always use SL and set it about 20-25pips..
I'm daytraders and its nice job for being trader in forex..
 

Master Forex IB

Active Trader
May 23, 2013
174
1
27
Stoploss is an easy way to manage risk at our will . We know how much funds we had in trading account so we set stop loss that automatically close trades when we are not in profit. In this way we bear affordable loss . Stop loss is a efficient tool for new traders specially who feel dificulty in risk management.
 

Jackbro

Trader
Nov 12, 2013
1
0
12
Stop loss plays very important role in the fields of Forex trading. It prevents us from heavy loss if the market goes against. Many traders loose lots of trade it's because they don't use stop loss. Stop loss should be placed 10-20 pips, if you are a scalper.
 

rrayne20009

Trader
Sep 13, 2013
57
2
17
Great threard,very informative.How do I know where to place my stop loss on a forex trade?