Why should you use a stop loss order?

Discussion in 'General Forex Discussion' started by Rambo35, Mar 10, 2014.

  1. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    A stop loss order is an order that closes out your trading position with the intent of cutting your losses when the market is moving against you. There is no rule of placing the stop loss order, it all depends of your trading strategy. Using stop loss order should be a part of any trading strategy, so your account is protected from the unpredictable market’s movement.
     
  2. angle13

    angle13 Banned

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    it is very important friend. because if you do not set stop loss. you will burn your account with one wrong order
     
  3. fxapex

    fxapex Active Trader

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    its a very important tool, it helps your account from getting swiped when you fix a wrong trade.
     
  4. Afzal_TP

    Afzal_TP Trader

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    Stop loss is very effective tool in trading so trader must use this to save their account from huge losses because Forex is very risky business and trader should follow proper trading plans and strategies.
     
  5. bablogfx

    bablogfx Confirmed HotForex Representative

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    Stop loss is crucial feature in trading, you should use it, otherwise you'll get your deposit spilled out.
     
  6. Rockefeller

    Rockefeller Master Trader

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    Stop loss levels are really important part of risk management. If you don't use any stops then eventually you will lose everything.
     
  7. Hilda13

    Hilda13 Trader

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    Besides stop loss (it must become best friend of yours), I think that you'll have to make new friendship, which will helps you not to become greedy.....set also take profit :)
     
  8. Pionex

    Pionex Trader

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    It is not matter if you always keeps in front of meta trader. But if the change of currency will go down 100 pips in one second, you may make a big loss. Or if you could not stay always in front of meta trader then you should use stop loss. Otherwise you may loss all of your capital. It is better to start with a demo account and you will understand why it is so important.
     
  9. Fxpipper

    Fxpipper Master Trader

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    Trading without SL is like driving your old Volkswagen sans any brakes, at hundred miles per hour,, with blinkers on..
     
  10. Aby123

    Aby123 Active Trader

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    a good risk management.
     
  11. Exness Support

    Exness Support Active Trader

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    One should always use a stoploss. Trading without stoploss means giving exposure to your account of unlimited risk. Always trade with a stoploss and when it gets triggered accept the loss and look for a new trade after a while.
     
  12. goodness

    goodness Trader

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    Stop lose helps protect your trade against loss especially in your absence. It closes your trade when you are running at loss. One can trade without setting the stop loss as long as he is there to monitor the platform.
     
  13. kaito kid

    kaito kid Banned

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    stop loss gives us the opportunity to trade correctly. losses will be limited to the use of stop loss. making trades that we do will be safe
     
  14. ClueBox

    ClueBox Trader

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    I consider it as a prevention. To avoid a bigger lost and to a better safe trade.
     
  15. koyl

    koyl Trader

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    Stop loss order is very important . It helps in cutting your losses when the market is trading against you. It a is a way of managing your trading account.
     
  16. pinbar

    pinbar Newbie

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    I use stop loss to avoid unnecessary losses that often results due to unexpected news and market behaving like crazy.
     
  17. ambitionfx

    ambitionfx Trader

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    When I first started trading forex, I also see without SL trades can reach TP easier since nothing can stop it as long as you have enough fund to avoid margin call. However, when market go reverse, it never showed a sign of recovery and all my trades even lost 70% fund since I thought they could turnaround. (swap fees charged and I closed them).

    From that day, I never missed setting SL for my trades. I think new trader should make it as a habit.
     
  18. ProFXManager

    ProFXManager Active Trader

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    Personal!, i do not use SL, because its the hard way to realize a loss, for myself a do async hedging an order which goes wrong.
    Also there is a academic study from the Bond university attached, which compares different szenarios...using SL is not the best option, it is "old school".
    There are more pdf's available, but require signed NDA.
     

    Attached Files:

  19. Enivid

    Enivid Administrator Staff Member

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    That's not an "academic study" and it was not published by Bond University. It was self-published by its author.
     
  20. ProFXManager

    ProFXManager Active Trader

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    its an additional information about sl for public use!

    and wrong again, it was an abstract from the original doc "Do initial stop-losses stop losses", which was published 2008 by the same author!
     

    Attached Files:

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