About Stops
Page 1 of 109 123451151101 ... LastLast
Results 1 to 10 of 1086

Thread: About Stops

  1. #1
    Super Moderator Gulfstream's Avatar
    Join Date
    Jan 2013
    Posts
    898
    Promo (¢)
    0
    Thumbs Up
    Received: 220
    Given: 111

    About Stops

    When at the traders’ hangouts a question on stops arises the holy war starts: to set or not to set, and where, and other stuff like that.

    But the biggest mistake in my opinion is that people believe that the stop is a certain element of the MM or Risk Management. Particularly the immature minds are affected from reading books, where they are offered to set the stop at not more than 2% on the previous candle, and other "classical" methods like "cut your losses, let profit run".

    From the position of the quantum, a stop is the same way to go out of position as a take-profit, n-Bar stop, or the default system output. But today we are talking about stops and the MM has nothing to do with it. Yes I agree that the stop affects the risk, but at the stage of the system design, at what risk is an objective reflection of the System Preferences. MM and RM are the completely different stage of System Development Framework, and it is better to leave it until later in order not to stuff our heads with superfluous information, but act consistently.


    Dedicated to fans of short stops

    Some people believe that a short stop proportionally reduces the risk, but it is not so, to set short stops one needs the perfect timing to enter. And when the timing is not easy the market with persistence knocks out all these stops, there appear all the fables of the puppeteers ...

    Stop Loss is set not to exit the market when it goes against the position. It is set in order to go out when the market will drop as a stone, i.e. I think that the stops are not for regular situations. I believe that an acceptable level of output by the stop is 5-10% of the sample, stop is the last hope for the system. In regular situation the system should have the rule(s) on the way out of position, the so-called smart stop when the system determines that the market has changed and it is time to leave. The idea of this post is that the stops should be set far enough from the market, because they are the last line of our defense.


    source_http://ubertrader.livejournal.com/2053.html

    Not allowed!
    Last edited by Gulfstream; 02-27-2013 at 04:38 PM.

  2. #2
    Rookie mohamed reda's Avatar
    Join Date
    Aug 2013
    Posts
    1,012
    Promo (¢)
    820
    Thumbs Up
    Received: 14
    Given: 9
    i think using stop loss is so important thing for any trader because he may face a margin call in any time if the price go against him so he will face this margin call so that reason we must as a beginner trader know where we must put our stop loss level and we can use any resistance or support level to put our stop loss .

    Not allowed!

  3. #3
    Registered user d3d3's Avatar
    Join Date
    Aug 2013
    Posts
    11
    Promo (¢)
    55
    Thumbs Up
    Received: 1
    Given: 0
    stop loss is very important for a trader because by using stop losses so we do not run out of money when we are trading. and we also have to always use money management to control our balance so we can know how many stop loss that we will use later.

    Not allowed!

  4. #4
    Registered user
    Join Date
    Aug 2013
    Posts
    262
    Promo (¢)
    2,290
    Thumbs Up
    Received: 11
    Given: 1
    Quote Originally Posted by mohamed reda View Post
    i think using stop loss is so important thing for any trader because he may face a margin call in any time if the price go against him so he will face this margin call so that reason we must as a beginner trader know where we must put our stop loss level and we can use any resistance or support level to put our stop loss .
    Already a very important stop loss to protect capital from great loss expected at any time in the forex market because it is not as easy as some traders believe, and I see that he must reduce risk next to the off position trading losses until they are safely and increase confidence in the self during trading

    Not allowed!

  5. #5
    Rookie martyn's Avatar
    Join Date
    Jul 2013
    Posts
    1,328
    Promo (¢)
    1,030
    Thumbs Up
    Received: 19
    Given: 0
    Indeed, many traders were stopped short, because maybe that way the risk in forex trading will be lost, but unfortunately when we do the trade again and we will definitely find conditions like that again, are we going to continue to make a short stop to avoid a situation like it, and our capital is reduced little by little. Perhaps we can better stop trading when we already get benefits, so we are satisfied with the benefits that we get our margins and strength be increased.

    Not allowed!

  6. #6
    Registered user
    Join Date
    Aug 2013
    Posts
    223
    Promo (¢)
    10
    Thumbs Up
    Received: 4
    Given: 2
    short stop not good because it make the earning lost some time the market go in the right direction but we cut the position because the market give us small reversing but if will be patient we can achieve 100 pip but we must make good analysis to be sure from the direction and trust of the point of enter

    Not allowed!

  7. #7
    Registered user
    Join Date
    Aug 2013
    Posts
    262
    Promo (¢)
    2,290
    Thumbs Up
    Received: 11
    Given: 1
    Quote Originally Posted by king22 View Post
    short stop not good because it make the earning lost some time the market go in the right direction but we cut the position because the market give us small reversing but if will be patient we can achieve 100 pip but we must make good analysis to be sure from the direction and trust of the point of enter
    Stop loss can not we identify a random but must we identify through technical analysis or the analysis that we open it trades and can be small or large depending on the trading method I sometimes put stop loss of 10 points and did not lose in the deal and also the author of 100but the point battles this deal

    Not allowed!

  8. #8
    Registered user
    Join Date
    Aug 2013
    Posts
    769
    Promo (¢)
    355
    Thumbs Up
    Received: 7
    Given: 4
    It will be interesting topic if we are talking about stop loss because people will have different opinion about it. For me, stop loss is used to be a proof for my wrong prediction. If it hit my stop loss then it means my prediction about market is wrong and it will be better if I stop trading and wait for another entry in market movement. Pushing yourself to trade in this condition then only make you losing more money.

    Not allowed!

  9. #9
    Rookie
    Join Date
    Mar 2013
    Posts
    3,947
    Promo (¢)
    0
    Thumbs Up
    Received: 216
    Given: 113
    Stop loss is a great tools to control and limit the losses in Forex. Without controlling the loss a single bad trade can devour our profits of ten good trade. Thus A trader should always use risk control techniques like stop loss, hedging etc. A stop loss should be placed properly to survive minor volatility and fluctuations in the market.

    Not allowed!

  10. #10
    Registered user
    Join Date
    Aug 2013
    Posts
    223
    Promo (¢)
    10
    Thumbs Up
    Received: 4
    Given: 2
    Quote Originally Posted by PROPENSITY100 View Post
    Stop loss is a great tools to control and limit the losses in Forex. Without controlling the loss a single bad trade can devour our profits of ten good trade. Thus A trader should always use risk control techniques like stop loss, hedging etc. A stop loss should be placed properly to survive minor volatility and fluctuations in the market.
    yes stop loss very good with the scalping style but for traders who like to work on big frames i think stop loss will be very danger because the position take days to achieve the point or the profit but in general stop loss very good tools and it used to manage the money

    Not allowed!

Page 1 of 109 123451151101 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •