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  1. #1
    Super Moderator RoboForex Trader's Avatar
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    How to place the Stop Loss correctly

    Many traders complain of the fact that the Stop Loss placing is not profitable, cause it is carried away very often, and due to this issue it is better to bide a wee, and then get a profit if one is fortunate. But others argue that a Stop Loss should be put, or in one terrible moment, the market will clear your trading account. But even if you put the Stop Loss, it also will not save your deposit from death. After all, a large number of Stop Loss executed can also lead to deposit nullification.
    Some traders might argue that the deposit can be protected by the Locks, locking the losses in the flat between the two differently directed orders. But the locks have their own problems and nuances. But this topic is not about locks, but for those who are going to place the Stop Loss, but does not know how to do it correctly.

    Most of traders place the Stop Loss off the mark, supposedly 50 points is enough to be saved from the market. But in case the market took out Stop order placed, the trader decides it’s broker’s fault and malicious mischief. In fact, the broker does not hunt for Stop Losses. But the market likes to do it. That’s why very short Stop orders can be broken by hands down.

    Types of Stop Loss order:

    Time stop, or stop by times.
    We should enter to the market and waiting for a price runup or price level broken. In case the script is not realized for an hour, we close position at the market price, it does not matter will it be profitable or not. For example, we trade on the daily chart, we should close position if the signal is not realized within the day.

    The system Stop Loss.
    We have a TS, a signal and profit is expected in case we place a long position. But if the price turned and came down the X points, reaching the Nth level, the script was not realized. The script embedding directly depends on the market volatility. If the market is very volatile, the Stop Loss should be placed as far as possible. In case the script is implemented, we’ll get more profit. But in case of low volatility the Stop Loss can be small.

    MM Stop Loss.
    This type of Stop Loss is calculated by money management on the basis of including the risk percentage of the deposit. For example, the risk of each transaction corresponds 1% of the capital, with a deposit of 10*000 US dollars, 1% equals to 100 US dollars 0.1 In case the transaction includes 0.1 lot from the standard then the Stop Loss will be equal to 100 points.

    The Stop Loss is one of the components of the trading system, which does not work without all the TS complex. If a trader does have a profitable Trading System, the correct Stop Loss placing will not help him to earn, but just stave off deposit loss.
    These types of Stop Loss can be combined, using a bundle, everything depends on the trading system.

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  2. #11
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    Quote Originally Posted by alaminmgt View Post
    If you want to become a good trader you should must be need stop loss system. Many of the analysis can be go your against so you must be need to use stop loss system for your best of luck .
    there are many options and facilities in the trade for risk management in the trade and one of them is with your use of stop loss in this trade so that way you will have a loss in trade restrictions in this and so you will continue bsia better in this trade also if you have a loss limit and the combined money management you will be very good even for the

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  3. #12
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    there are 3 useful tools which helps to identify somewhat perfect stop loss level, namely Support and Resistance, Pivot Point Calculator, Fibonacci Retracements. These are the main tools most traders use to put stop loss. So by carefully studying those will help you to determine a favorable stop loss that leave more space for the market to breath yet at the same time turn the odds in your favor. Last but not the least, if you can't afford big stop losses you should adjust your position sizing.

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  4. #13
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    Can stop the loss of many methods, but it needs to experience and teach how to put the loss well

    - - - Updated - - -

    Forex can be learned from many places through the Internet, there are a lot of sites and forums where a lot of good information

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  5. #14
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    In my view stop loss is very important. It helps us to limit our losses. limiting losses is very important because without any limit to the losses a single bad trade can devour the profits made in ten god trades along with the capital. Thus we should always insist on placing an appropriate stop loss.This is part of a good risk management system.

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  6. #15
    Trader dkarev's Avatar
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    Quote Originally Posted by PROPENSITY100 View Post
    In my view stop loss is very important. It helps us to limit our losses. limiting losses is very important because without any limit to the losses a single bad trade can devour the profits made in ten god trades along with the capital. Thus we should always insist on placing an appropriate stop loss.This is part of a good risk management system.
    well to me,i believe stop loss is a must use tools for anybody that want to earn from the business of Forex trading,though some think it kinda of no use to use stop loss but stop is the only way we can protect our trading capital form lose.it very important to make use of it all the time when trading

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  7. #16
    Trader zintek's Avatar
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    Placing the quit reduce in the appropriate position in the starting prevent so many drops next and really consider one of the best factors that value the investors who is an expert or not. For me I use 1:2 technique , that indicates I put my quit reduce 50 percent of my focus on, for example if my focus on 100 pips , then I quit reduce will be 50 pips , with this technique even if you one deals are equivalent of your reduce deals you still obtain profits.

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  8. #17
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    In real account, I always put SL with 50 pips. It's really safe and already based on my MM rule.

    but, If my SL 50 pips is near Support-Ressistance or Yersterday High/Low, then I move it about 10 pips above/below, so if market/price try to retrace to Support/Ressistance level, it wont easily hit my SL.

    But never move SL too far away, Max SL is 80 pip.

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  9. #18
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    I found i lost money because too tight setting for stop loss. later i don't use too much stop loss. i close my position manually mainly. but i use it when there is big movement coming

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  10. #19
    Registered user mohamed reda's Avatar
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    chose the right position to put your stop loss or your take profits is so necessary thing to stop loss money or take your profits from any trade . you can chose the right position of stop loss or take profits by using any support level or resistance also you can use Fibonacci levels to know where you must put your stop loss or take profit .

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  11. #20
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    The 3 types of stop losses which you have mentioned, RoboForex Trader, are exactly the same which i do. Whenever i see good entry in my system, then i use system stop loss.
    Whenever i am deeply concerned with the management of money, i use MM stop loss and the last one which i use is when i dont have enough time to track the position :)

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