Tax Season is Here! Save 15% on H&R Block Online
iconAll times are GMT -4. The time now is 01:19 AM. | Search:

» StockRants Stock Forum » Public Stock Forums » Forex Trading » Importance of stop loss placement in forex trading.



Reply
 
Thread Tools Search this Thread
Old 01-30-2012, 09:52 PM   Nav to Top  #1
asiaforexmentor
Senior Trader
 
asiaforexmentor's Avatar
 
Join Date: Mar 2011
Location: singapore
Posts: 107
Favorites: set,youp,tee
Rep Power: 112
Reputation: 105
asiaforexmentor will become famous soon enoughasiaforexmentor will become famous soon enough
Default Importance of stop loss placement in forex trading.

FOREX TRADING: IMPORTANCE OF STOP LOSS PLACEMENT



A lot of traders do not believe in stop loss placement.
Some believe in mental stop loss placement. meaning that when they feel that a trade is not going their way, they will then cut it off.
That is so terribly wrong. Stop loss placement is one of the most crucial key if you want to make forex trading profitable.
Another mistake traders make is that they shift their stop loss. They shift it backwards, thinking that the trade will just go back a little more and will come back their way. And sure enough, most of the time, they took more losses than they would have if they stayed on their initial stop loss.
In the chart above, is an example of the importance of stop loss placement.
Usd chf h4
In the highlighted box, thats a pin bar. When some guys see this pin, they will naturally take it down and the ideal place for their stop loss is the horizontal line in orange that is drawn.
Scenario A) if the trader did not place a stop loss, or a mental stop loss – look at how high the usd chf pair went upwards. Their account will be blown or had a huge huge loss.
Scenario B) Trader shifted their stop loss backwards from the initial orange line thinking that the trade will go back down. They would have taken a huge loss as the move went up terribly fast and would have gotten a big blow to their account
Scenario C) Trader sticked to their initial stop loss, they would have just gotten a standard loss of the % risked in their account, based on their money management. And this is just one of the trades among the plenty, therefore this loss is not a big deal.
I hope you guys can see the importance of placing and sticking to your stop loss. Or else your account will be blown before you know it.
Ezekiel Chew
Asia #1 Forex Mentor
www.asiaforexmentor.com
__________________
A complete professional forex trading system that even newbies can apply instantly.

Asia Forex Mentor forex course is now FREE! www.asiaforexmentor.com
asiaforexmentor is offline   Rate this post Yes | No Reply With Quote
Old 08-27-2016, 03:29 AM   Nav to Top  #2
Neha Agrawal
Junior Trader
 
Neha Agrawal's Avatar
 
Join Date: Jul 2016
Location: Indore
Posts: 26
Favorites: Southwest Airlines
Rep Power: 40
Reputation: 10
Neha Agrawal is on a distinguished road
Default

Stoploss placement is the must activity to prevent from loss. Expert help is required in applying stoploss.
__________________
Epic Research- https://www.epicresearch.website/
Neha Agrawal is offline   Rate this post Yes | No Reply With Quote
Old 09-02-2016, 06:31 AM   Nav to Top  #3
Anmol2016
Junior Trader
 
Anmol2016's Avatar
 
Join Date: Aug 2016
Location: Kuala Lumpur
Posts: 5
Favorites: AAP AGO TIF
Rep Power: 38
Reputation: 10
Anmol2016 is on a distinguished road
Default

It is always good to apply stoploss in order to avoid big losses.Getting help from share market experts is an advantage.
Anmol2016 is offline   Rate this post Yes | No Reply With Quote
Old 06-16-2019, 05:52 AM   Nav to Top  #4
James Charter
Senior Trader
 
James Charter's Avatar
 
Join Date: Nov 2016
Location: Dhaka
Posts: 160
Favorites: SSNLF, NASDAQ, NYSE
Rep Power: 41
Reputation: 11
James Charter is on a distinguished road
Default

The importance of stop loss is important if you are taking extra risk. I normally don’t use it because I keep up with right money management upfront, which helps me with working. I find it easier with broker like FreshForex, who are amazing due to their lovely set of features and facilities that counts for low spreads, fast execution without slippage or requite, it all works perfectly in my favour. The biggest benefit for me is their 200% deposit bonus, which means I don’t have to be overly concern about things.
James Charter is offline   Rate this post Yes | No Reply With Quote
Reply

Similar Threads
Thread Thread Starter Forum Replies Last Post
WHAT IS CONFLUENCE IN FOREX TRADING? asiaforexmentor Forex Trading 3 04-21-2019 11:42 AM
Forex News Trading – Why should you NOT trade this! asiaforexmentor Forex Trading 3 08-11-2016 03:07 AM
Free Daily Price Action Forex Trading Strategies & System From Asia Forex Mentor asiaforexmentor Forex Trading 0 01-24-2012 09:59 AM
Free Daily Price Action Forex Trading Strategies & System From Asia Forex Mentor asiaforexmentor Forex Trading 4 08-31-2011 10:58 PM
Question on Stop Limits/Trailing Stop Order stockramer Feedback/Help 1 06-03-2009 05:54 PM


Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On