Is it necessary to use cut loss in trading?
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Thread: Is it necessary to use cut loss in trading?

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    Is it necessary to use cut loss in trading?

    In trading, cut loss can be good or bad for traders. In your opinion, is it necessary to use cut loss in trading? Do you think if cut loss gives more benefits or not? As I experienced, cut loss can prevent bigger losses when the price is out of expectation. But cut loss can prevent us to face Target Profit too if we are too hurry to cut loss when the price is moving back to our TP point. This is two edges of cut loss in trading for me, so do you think cut loss necessary in trading?

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    cut loss, this is the way to protect our balance from unwanted situation cut loss is more flexible then stop loss itself, but the traders need to know when they have to do it, cut loss will make them have the chances to fix some problems and do a better trading in the future
    and of course, the benefits that cut loss can prevent us from a bad thing, not easy to face some loses, but cut loss is much better than have to hold big floating minus and lead the traders to meet the MC and blow up the accounts

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    Quote Originally Posted by newentry View Post
    cut loss, this is the way to protect our balance from unwanted situation cut loss is more flexible then stop loss itself, but the traders need to know when they have to do it, cut loss will make them have the chances to fix some problems and do a better trading in the future
    and of course, the benefits that cut loss can prevent us from a bad thing, not easy to face some loses, but cut loss is much better than have to hold big floating minus and lead the traders to meet the MC and blow up the accounts
    Yes, cut loss can prevent us to meet Margin Call and blow up the account but if we are too often doing it then it will lower down our own confidence. Different person can be different in consideration to use cut loss or not, but I prefer to use Stop Loss because it is easier to control emotion than cut loss manually. I think it is easier for beginner to do it (using stop loss) than we cut loss manually. What do you think about it?

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    It is very good to cut your losses, but it is in the way that will be professional, not that you will be cutting the losses anyhow. If you are the type that is using stop loss all the time, it will be very great for you to do, and you will gauge the best side that will not affect you in cutting this stop all the time you make a position in the market.

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    The use of stop loss is very important in trading even you can cut your loss according to the market situation manually too. There are many trader's who use proper stop loss but they still loose money because they not able to control other things like money management, risk management, their emotion and greed etc.

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    cut loss is flexible, because the traders will have more time to sustain their order before make a decision to close it because there is a chance that market will move back after make some analysis of course, and also the traders need to prepare themselves with many thing happens in the market with all the risk in hands, they have got ready for this,

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    sure you must cut loss in trading and arrange your SL point on a level that you can keep trading even if your trade hit SL point

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    A trader should take less risk in his trading and should use proper risk management for trading. A trader have to be happy with slow and consistent profit in this field many trader's try to make bigger profit and want to become rich very soon but we have to do trade with proper discipline stop loss is a good way to reduce our losses in forex

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    I bet it, it is so necessary, all traders should understand that the market trading is never for fun, one should understand that the lifespan of the market will be very interesting if it is done in the way that bring losses short, this will help the trader to have what it really takes to be successful and make him survive all the way.

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    Quote Originally Posted by silverlady View Post
    It is very good to cut your losses, but it is in the way that will be professional, not that you will be cutting the losses anyhow. If you are the type that is using stop loss all the time, it will be very great for you to do, and you will gauge the best side that will not affect you in cutting this stop all the time you make a position in the market.
    Yes, you're right. It will need more consideration to cut loss position when we have made setting for Stop Loss because it will break the rules if we cut loss manually. But if we have made another analysis and we can take the risk to cut loss although there is stop loss, it is okay. But I think we shouldn't do it oftenly.

    Quote Originally Posted by Khimi234 View Post
    The use of stop loss is very important in trading even you can cut your loss according to the market situation manually too. There are many trader's who use proper stop loss but they still loose money because they not able to control other things like money management, risk management, their emotion and greed etc.
    Yes, it's easier in money management and emotion control when we are using stop loss than we cut loss manually. It is better to use stop loss for beginner traders like me, and maybe we can use cut loss when we want to scalp.

    Quote Originally Posted by newentry View Post
    cut loss is flexible, because the traders will have more time to sustain their order before make a decision to close it because there is a chance that market will move back after make some analysis of course, and also the traders need to prepare themselves with many thing happens in the market with all the risk in hands, they have got ready for this,
    It is flexible if there is no stop loss in trading, maybe we can use it if we used basket strategy which is usually no Stop Loss but close all positions at the same time. We should consider the risk and opportunity with using cut loss or stop loss in trading.
    ou sai
    Quote Originally Posted by alamayreh View Post
    sure you must cut loss in trading and arrange your SL point on a level that you can keep trading even if your trade hit SL point
    So, which one do you choose here? Using cut loss or arrange Stop Loss point? You said that I must cut loss in trading but you said I must arrange my Stop Loss point either. If we cut loss, then stop loss point will be useless (not used).

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