Stop Loss

[knoppixgold]

hello friends....i got problem about stop loss........i ve learn we must put SL at support and resistance....but for me it seem not practical....some say its according to the pair such EU we put 30 pips and GU we pun double....some say its about risk dan reward....if our risk and rewad 1:2 then if our TP is 60 pip then our SL is 30....ive try it out....but its seem not practical for me...so i dont put SL anymore....do u guys have suggestion...for now i just close manually if i think the trade is not profitable...but its difficult for me to watch it all the time.....thanks....

[zapper]

Well, When you use SL, you would like to use it wisely ;-)

The best way to set SL level is by basing it on the volatility of a selected pair. Consider, for example the GU pair... It`s 1.25 times more volatile than the EU pair. Hence, setting a low SL level would trigger it and put you under risk. On the other hand, you could stay on the safer side by setting the SL level at the S2(Second support level) for long orders of GU and S1 for long orders of EU. The same thing applies to short orders as well, but you`ll be taking Resistances into consideration, instead of Supports...

[knoppixgold]

Originally Posted by zapper

Well, When you use SL, you would like to use it wisely ;-)

The best way to set SL level is by basing it on the volatility of a selected pair. Consider, for example the GU pair... It`s 1.25 times more volatile than the EU pair. Hence, setting a low SL level would trigger it and put you under risk. On the other hand, you could stay on the safer side by setting the SL level at the S2(Second support level) for long orders of GU and S1 for long orders of EU. The same thing applies to short orders as well, but you`ll be taking Resistances into consideration, instead of Supports...

Thanks for ur opinion....if i'm not mistaken u r talking about pivot line.....where S1,S2,S3 and R1,R2,R3 and pivot itself. its make sense....

[ismailsolutions]

No need to set the Stop Loss function if you realize what you doing and understand the Forex basics you will the leader of traders,but unfortunately most people trade in the FX with "Luck" not the knowledge

[knoppixgold]

Originally Posted by ismailsolutions

No need to set the Stop Loss function if you realize what you doing and understand the Forex basics you will the leader of traders,but unfortunately most people trade in the FX with "Luck" not the knowledge

could u clarify it further....i don understand trading with "luck". forex is very volatile ...i think the most. if i'm not mistaken...they say only 5-10% get profit from this market..do u think this 5-10% trade only by "luck".....all the time....maybe sometime but not all the time....for me money management and discipline is the key.....that why until now i struggling with that. emotion my no 1 enemy....so by put proper SL...maybe i could manage my emotion...maybe.... for now i still dont use SL only trailing SL. somehow i agree with u that no need to set SL if we know what we are doing...the trend etc....but what happen if something happen to the country that the pair we are trade...riot, war or terrorist...bomb..etc....then...the SL is the most important to protect our capital.

[ibrahimom2008]

Originally Posted by knoppixgold

could u clarify it further....i don understand trading with "luck". forex is very volatile ...i think the most. if i'm not mistaken...they say only 5-10% get profit from this market..do u think this 5-10% trade only by "luck".....all the time....maybe sometime but not all the time....for me money management and discipline is the key.....that why until now i struggling with that. emotion my no 1 enemy....so by put proper SL...maybe i could manage my emotion...maybe.... for now i still dont use SL only trailing SL. somehow i agree with u that no need to set SL if we know what we are doing...the trend etc....but what happen if something happen to the country that the pair we are trade...riot, war or terrorist...bomb..etc....then...the SL is the most important to protect our capital.

I tell you what's Stop Loss is really about: For example you want to open a trade, but the spread is in volatile, so you can't just keep waiting for the rates to go up and down to close your trade and make some profit, and here where it come the Stop Loss technique useful because it's not just for stopping loss but also for stopping profit, let's say you want to make 10 pips profit and no less than 5 pips loss, so you make the Stop Loss at -5 pips and +10, and it will automatically close you trade.
I disagree with "ismailsolutions", because Forex has a risk even for the professional trader, so "luck" is important but not in case sensitive.
For me Forex is 93% knowledge and experience and 7% luck.

[knoppixgold]

Originally Posted by ibrahimom2008

I tell you what's Stop Loss is really about: For example you want to open a trade, but the spread is in volatile, so you can't just keep waiting for the rates to go up and down to close your trade and make some profit, and here where it come the Stop Loss technique useful because it's not just for stopping loss but also for stopping profit, let's say you want to make 10 pips profit and no less than 5 pips loss, so you make the Stop Loss at -5 pips and +10, and it will automatically close you trade.
I disagree with "ismailsolutions", because Forex has a risk even for the professional trader, so "luck" is important but not in case sensitive.
For me Forex is 93% knowledge and experience and 7% luck.

but most probably the stop loss (-5) is always hit first...before go to profit target....

[knoppixgold]

for now i put SL for 40pips....its due to money management. i try to fix SL only 40 pips means i admit i will lose my 40 pips i the price going to another direction.

[john.baem]

Maybe it such a good approach folks but sometimes what do u feel when ur heading for the suppose direction while any speculation like news is hitting ur SL than move to the direction you wish? Setting a SL is good but i prefer to have it manually like when i know im into the wrong direction..

[neo_moon1]

the stop loss should depend on the money being invested, i recommend you should always put stop loss of 6% of your invested money, and if u think u are an ace trader then u can go upto 12%, i hope this will further help u out