How to place the Stop Loss correctly - Page 329
Page 329 of 393 FirstFirst ... 229279319325326327328329330331332333339379 ... LastLast
Results 3,281 to 3,290 of 3923

Thread: How to place the Stop Loss correctly

  1. #1
    Super Moderator RoboForex Trader's Avatar
    Join Date
    Dec 2012
    Posts
    489
    Thumbs Up
    Received: 142
    Given: 33

    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.

    Not allowed!

  2. #3281
    Trader layigold's Avatar
    Join Date
    Dec 2013
    Posts
    10,145
    Thumbs Up
    Received: 164
    Given: 90
    There are different ways of placing stop loss in a trade and it depends on the trading strategy and the risk management being practiced . There are some traders that use fixed amount of pips to place their stop loss and any trade setup that is not too good enough for that will not be taken . A friend of mine would always use 35 pips for stop loss on any of his trade and the least of take profit target is 100 pops . and he is really doing well in trading .In my own case as a price action trader , I consider candlestick and chart patterns and my stop loss is usually few pips below or above the next cycle low or high to my entry level

    Not allowed!

  3. #3282
    Trader
    Join Date
    Apr 2016
    Posts
    4,048
    Thumbs Up
    Received: 20
    Given: 9
    Quote Originally Posted by layigold View Post
    There are different ways of placing stop loss in a trade and it depends on the trading strategy and the risk management being practiced . There are some traders that use fixed amount of pips to place their stop loss and any trade setup that is not too good enough for that will not be taken
    It is true that all traders analysis can differ and the basis on which they use stop loss can differ too, but they should cater to making trading positive. I use varying stop loss depending on my strategy and the potential for profits that the trade has. Using stop loss is important, the experienced traders also encounter losing trades, but not stop outs.

    Not allowed!

  4. #3283
    Trader Batavia's Avatar
    Join Date
    Oct 2016
    Location
    Batavia City
    Posts
    3,329
    Thumbs Up
    Received: 22
    Given: 13
    use a trailling stop or reset stop loss to breakeven or +5 pips when the price has get floating profits that's i use on my trade to reduce or minimizing the risk and set the TP is not too much if you are a day trader i think 30 pips a day is enough because if you stop loss always touching even after you reset to breakeven it can makes you stress because you will think you not get nothing only a draw that is only waste your time.

    Not allowed!

  5. #3284
    Trader sniper007's Avatar
    Join Date
    Jun 2017
    Posts
    10,929
    Thumbs Up
    Received: 81
    Given: 146
    Actually when it comes to making use of stoploss, traders has to learn and know that you can only be good at it after some time in practice. You will need to learn consistently from the market demo account because that is how you get to become more better and better. In a nutshell, there is no special way of using the stoploss. All depends on what works for you as a trader.

    Not allowed!

  6. #3285
    Trader Lyon's Avatar
    Join Date
    Jul 2017
    Posts
    9,846
    Thumbs Up
    Received: 83
    Given: 114
    Quote Originally Posted by sniper007 View Post
    Actually when it comes to making use of stoploss, traders has to learn and know that you can only be good at it after some time in practice. You will need to learn consistently from the market demo account because that is how you get to become more better and better. In a nutshell, there is no special way of using the stoploss. All depends on what works for you as a trader.
    Traders that has mastered the used of stoploss will have little losses in the market and then the money they can make will be increased. Trading in forex market needs the understanding of the possible losses. If we are even with the best of strategies, the market is no respecter of no one, so little mistakes could make us loss.

    Not allowed!

  7. #3286
    Trader Killer_Queen's Avatar
    Join Date
    Jul 2016
    Location
    in a place i call home
    Posts
    2,827
    Thumbs Up
    Received: 65
    Given: 54
    Quote Originally Posted by Lyon View Post
    Traders that has mastered the used of stoploss will have little losses in the market and then the money they can make will be increased. Trading in forex market needs the understanding of the possible losses. If we are even with the best of strategies, the market is no respecter of no one, so little mistakes could make us loss.
    they are still losing yet they will have its amount in small amount of money. good traders make their trades reasonable by using proper trading strategy. they also know how to place stop loss correctly and while correct itself is flexible not in fixed amount. placing stop loss is a situational thing when we must look at market's volatility before we trade.

    Not allowed!

  8. #3287
    Trader Batavia's Avatar
    Join Date
    Oct 2016
    Location
    Batavia City
    Posts
    3,329
    Thumbs Up
    Received: 22
    Given: 13

    The right place for stop loss

    to place the Stop Loss correctly it depend on the strategy and all traders are different to set their stop loss.
    but this what i do on this market to place the stop loss on the outside areas support and resistance levels, using stop loss is good and very advisable for every traders to avoid the big loss and the best place to set stop loss is upper and lower of the levels of support and resistance, make sure you have know how to find that levels and because this is important, and the otherwise that level is also the good option for open an order,

    i use indicator support and resistance and also calculation method to find the support and resistance level and pivot point like a picture below.

    SnRindicator.jpg

    and then we can use calculation to find the support and resistance.
    with the calculation formula like the example below we can find the level of support and resistance lines and the result is in the picture below. to find the OHLC (open high low close) use the yesterday of history of daily chart.

    SnR calculation.jpg

    EURUSD TF daily= O= 1.2264 H= 1,2335 L= 1.2250 C =1.2318

    P(pivot point)= (1.2264 + 1,2335 + 1.2250 +1.2318) / 4 = 1.2291

    Sup 1 = (2 x P) - H = (2 x 1.2291) - 1,2335 = 1.2247
    Sup 2 = P - (H - L) = 1.2291- (1,2335 - 1.2250 ) = 1.2206
    Res 1 = (2 x P) - L = (2 x 1.2291) - 1.2250 = 1.2332
    Res 2 = P + (H - L) = 1.2291+ (1,2335 - 1.2250 ) = 1.2376

    many of traders use this calculation method to find that levels. you can try this.

    Not allowed!

  9. #3288
    Trader Lyon's Avatar
    Join Date
    Jul 2017
    Posts
    9,846
    Thumbs Up
    Received: 83
    Given: 114
    There is no perfection in forex trading. if we want to know how to use the stoploss, it all starts with our trading strategy understanding. we need to learn and know how to make use of our trading strategy first. Then from there we can come about the use of the stoploss more better. My concept, I use the stoploss by placing it st the lower or higher point of the candle stick signal bar.

    Not allowed!

  10. #3289
    Trader Azis Muslim's Avatar
    Join Date
    Sep 2013
    Posts
    5,514
    Thumbs Up
    Received: 280
    Given: 193
    Quote Originally Posted by Lyon View Post
    There is no perfection in forex trading. if we want to know how to use the stoploss, it all starts with our trading strategy understanding. we need to learn and know how to make use of our trading strategy first. Then from there we can come about the use of the stoploss more better. My concept, I use the stoploss by placing it st the lower or higher point of the candle stick signal bar.
    [lang=id]Sort of, but at least we could try to become a good trading which has nearly accurate analysis to do. Having a good knowledge and experience to set stop loss correctly sure give us a skill to control our risk and this itself could lead us to that perfection in trading. Even we are still losing the money, but we do not lose our confidence and understanding about market because that is all that matters for us as traders.[/lang]

    Not allowed!

  11. #3290
    Trader
    Join Date
    Mar 2017
    Location
    Biafra
    Posts
    11,775
    Thumbs Up
    Received: 58
    Given: 20
    Understanding the right techniques in using the right stop loss will give us the opportunity to manage up our capital and ensure we don't loose them in an unnecessary means. Stop loss is very important and traders have to understand that with good money management in their trade, they can have what it takes to actually survive in forex. To become better we need to manage loss and build up a profitable means of trading well for our own good. For me stop loss is compulsory and with my risk management I can have what it takes to only risk what I can afford to loose.

    Not allowed!

Page 329 of 393 FirstFirst ... 229279319325326327328329330331332333339379 ... 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
  •