Important of using stop loss Levels
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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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    Well yeah sir you have a right idea about the use of stop loss, so many trader's don't want to use stop loss because in their trading there is no rule of stop loss, they all want to avoid this because they fear to lose money in forex, they don't want to recover their losses and that's why they are ready to do trade with big negative floating money, this is bad for them. Personally my stop loss is only for 5 to 10 pips max.

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    Quote Originally Posted by forexlearner View Post
    Well yeah sir you have a right idea about the use of stop loss, so many trader's don't want to use stop loss because in their trading there is no rule of stop loss, they all want to avoid this because they fear to lose money in forex, they don't want to recover their losses and that's why they are ready to do trade with big negative floating money, this is bad for them. Personally my stop loss is only for 5 to 10 pips max.
    this even can help them to minimize their risk before going against the market trend.i have personally experienced this so i find that one should know the importance of stop loss in their trading strategies.and i too use stop loss in all my trade which i put with proper sl and tp. risk reward 1:2 or 1:3 .

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    You have a good point in your thread sir, it is all about the importance of securing the trading account of the trader. Irrespective of how strong the trading strategy of the trader is, a good protective measures are important in it. It is always good to use stop loss, it will help traders to manage their trade and the trading account.

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    i read your topic here and i am happy, it gives me the happiness for the fact that i remember and get refreshed that i can make it in the forex business. this is a ways to protect and secure the trading account and knowing the forex business is not certain with any strategy and the business is probability business.

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    To cut it short the simple word to be used is that there is nothing certain in the business therefore we need to learn how to protect our trading account. If we should learn how to protect our trading account then we would know the importance of stoploss therefore being able to make use of it effectively. We should not be over confident with our trading strategy. No matter what we need the stoploss function.

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    Quote Originally Posted by splash View Post
    To cut it short the simple word to be used is that there is nothing certain in the business therefore we need to learn how to protect our trading account. If we should learn how to protect our trading account then we would know the importance of stoploss therefore being able to make use of it effectively. We should not be over confident with our trading strategy. No matter what we need the stoploss function.
    Of course, there is never a certainty in the market, the market is always dynamic and unstable most times, and even when it is stable, it can not be doing the fixed things every time. This is why traders has to prepare themselves all the time. There are times that the market will favour us, and there are times the market will go against us, but when there is stop loss, it will help us actively.

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    Quote Originally Posted by cozard007 View Post
    Of course, there is never a certainty in the market, the market is always dynamic and unstable most times, and even when it is stable, it can not be doing the fixed things every time. This is why traders has to prepare themselves all the time. There are times that the market will favour us, and there are times the market will go against us, but when there is stop loss, it will help us actively.
    Yes, no matter how sure my trading signal is, I also ensure to make use of my stoploss I can never tell what will happen but then in some case it happens that my stoploss will be more higher. But then what matters is that we should be trading the way that we have learned and that works for us. Ultimately trading without the use of stoploss has never worked for any trader on the long term.

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    Quote Originally Posted by splash View Post
    Yes, no matter how sure my trading signal is, I also ensure to make use of my stoploss I can never tell what will happen but then in some case it happens that my stoploss will be more higher. But then what matters is that we should be trading the way that we have learned and that works for us. Ultimately trading without the use of stoploss has never worked for any trader on the long term.
    Using stop loss is really important for trader's and all types of trader's have to use stop loss, no matter which type of strategy you are using, no matter which time frame you are using for trading you have to always follow stop loss in trading. I would suggest you to check your risk and reward every time and try to open your positions for good reward areas only. I personally on concentrate on 1:2 risk and reward trading strategies.

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    Quote Originally Posted by Khimi234 View Post
    Using stop loss is really important for trader's and all types of trader's have to use stop loss, no matter which type of strategy you are using, no matter which time frame you are using for trading you have to always follow stop loss in trading. I would suggest you to check your risk and reward every time and try to open your positions for good reward areas only. I personally on concentrate on 1:2 risk and reward trading strategies.
    Of course dear the use of stop loss is very common and important to use in forex, trader's are not doing right if they are ignoring stop loss during trading, Trading is always ambiguous when you don't have stop loss in trading and the proper use of it give you surety that you will not lose the whole margin of your account at once, risk management and money management both should be used well wisely with stop loss too.

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