Please help, Futures Trading

[jewellui]

Just wondering how far away do you normally put your stop loss? I think I have been putting mine too close...

 

[fadenscales]

I don't have a fixed stop loss in terms of value (I do use them), but what I do when considering where to place a stop loss is consider current market volatility (important at the moment), my risk:reward ratio, taken with a view to what my target is and then I consider at what point do I know I'm wrong i.e. is there a level below my trade (if i'm long) that if broken could lead to a speedy descent. I suggest you have a look into money management in more detail, Van Tharp - Trading your way to financial freedom is a great book for this.

Tom
Fade 'n' Scales

 

[jewellui]

I don't have a fixed stop loss in terms of value (I do use them), but what I do when considering where to place a stop loss is consider current market volatility (important at the moment), my risk:reward ratio, taken with a view to what my target is and then I consider at what point do I know I'm wrong i.e. is there a level below my trade (if i'm long) that if broken could lead to a speedy descent. I suggest you have a look into money management in more detail, Van Tharp - Trading your way to financial freedom is a great book for this.

Tom
Fade 'n' Scales

Thanks, reading around on the forums, it seems not everyone uses a stop loss but on my internship I was taught to always have a stop loss for every trade from which I can see the importance.