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Thread: Important of using stop loss Levels

  1. #1
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    Lightbulb Important of using stop loss Levels

    Many traders think that its better not to use stoplosses because of their superior market analysis or their system.BUT one think they forget that the market not move what they think or analysis always they may be getting 90% success trade but non can give 100% in market.

    1- you can have a system that is 99% accurate and lose money.
    2- you can have also have one that is 1% accurate and make money.
    WHICH ONE DO YOU CHOOSE ?

    someone have said Trading is like HIGH WIRE ACT.

    you may walk the wire 100 times without a safety net but the it may happen that very 1st fall only kill you
    YOU CANT AFFORT TO TAKE THAT CHANCE.

    HOW TO MANAGE OR CALCULATE THE STOPLOSS AMOUNTS

    Amount to risk in one year - 100.000
    Monthly Stop Loss (Months in year) 5 - 20.000
    Weekly Stop Loss (Weeks in month) 2 - 10.000
    Daily Stop Loss (Days in Month) 8 - 2.500
    Per Trade Stop Loss 2 - 1.250

    ITS A WAY TO MAXIMIZING RETURN WHILE MINIMIZING RISK

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  2. #31
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    The use of stop loss is very important to follow in our trades, I am using stop loss always in my trades. Some people have wrong mindset that they should don't use stop loss because market always hit their stop loss, but very soon we able to see that trader's lose due to margin call and stop out. This is the main problem for trader's when they ignore their stop loss in trading, trader's have to just wait and hold if they are in negative account.

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  3. #32
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    We never can be sure the direction of the market, therefore we need to ensure that we are protecting our trading account, in addition we have to know that trading has to be taken seriously, therefore we have to ensure that we have made use of the demo account in learning and thus knowing the important of stoploss to our account.

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  4. #33
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    Quote Originally Posted by splash View Post
    We never can be sure the direction of the market, therefore we need to ensure that we are protecting our trading account, in addition we have to know that trading has to be taken seriously, therefore we have to ensure that we have made use of the demo account in learning and thus knowing the important of stoploss to our account.
    right, we do not know what will happen in the market, and we just know how to make approaches and hope that we get the advantages to take the chances properly, and why,traders need to protect balance with well, and stop loss itself is a good one, but the main basic here that we need to use it based on the market conditions, and not with static setting for every trades,

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  5. #34
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    Quote Originally Posted by splash View Post
    We never can be sure the direction of the market, therefore we need to ensure that we are protecting our trading account, in addition we have to know that trading has to be taken seriously, therefore we have to ensure that we have made use of the demo account in learning and thus knowing the important of stoploss to our account.
    Yes sir, that is a very good part of trading, traders have to be well protective in what they are doing in the market, that helps trader more than anything else. If you are ever trading, try to always plan your stop loss along with it. And before you do anything like you said, you might test it through the demo trading first.

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  6. #35
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    One is that forex trading is a risky business and as a trader no matter how good we seem to be there is no way we would be able to get to know how the business work work. Therefore we would have to know and understand the business and knowing that the use of stoploss is really important. It would protect your account from wiping off.

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  7. #36
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    In many time s we find that the price go to the area of the stop loss . then it returns to the area of take profit we took . so i think that if there is a way which to avoid using hem it may be so good . and it by trading with a little lot size and use the market news to help us not to have a dangerous currencies.

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  8. #37
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    For the sake of protecting our trading account, I think it is a must to learn, if we should be able to learn and know how it could be applied on the real account then we would be able to become successful forex trader, the reason why so many people blow their account is all because they have not learned how to be disciplined therefore using the stoploss when trading.

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  9. #38
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    splash, if the traders understand to implement their knowledge in the market with well, they will come closer to achieve the goals and make it come true, success is in front of us and traders need to have good preparation to reach it, and then why need to pay attention for all the thing that will effect us for it,
    so to protect our balance for all the time is very important and the thing for this we can use stop loss

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  10. #39
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    Quote Originally Posted by newentry View Post
    splash, if the traders understand to implement their knowledge in the market with well, they will come closer to achieve the goals and make it come true, success is in front of us and traders need to have good preparation to reach it, and then why need to pay attention for all the thing that will effect us for it,
    so to protect our balance for all the time is very important and the thing for this we can use stop loss
    Well, if we have taken forex trading as a business which we would be able to make money only with time then I think the trader would get to understand the use of the stoploss level. First the trader has to know that it is a measure of controlling loss and thus has to accept loss knowing that nothing is really that certain in such a business.

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  11. #40
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    Quote Originally Posted by splash View Post
    For the sake of protecting our trading account, I think it is a must to learn, if we should be able to learn and know how it could be applied on the real account then we would be able to become successful forex trader, the reason why so many people blow their account is all because they have not learned how to be disciplined therefore using the stoploss when trading.
    Well, learning is the start of everything in the market, and it will be a very good way for traders to be well informed about the market at first. It is after this that the trader will now be implementing the right ways to do their tradaing. If a trader learns and do not implement it hs plans well, they will still lose. I can not be careless with no stop loss.

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