stop loss. why????

[Aesop20]

That's the thing with Forex, even if i was super confident in the direction, i still don't think i could bring myself not to set a SL, because anything could happen that could affect it.. it could be something completely unrealistic and improbable.. but it could happen and then you could be pretty screwed.

 

[rawrschach]

I think not having a stop loss and the improbable happening and cleaning out your account is a bit worse than a stop being hit for a 3ish% loss.

If your stop being hit = being screwed you're undercapitalised and shouldnt be trading.

 

[jezek5]

And his position just keeps going the wrong way.
Next stop 6130.Ouch.

 

[Nicolas01]

One piece of good advice that I would give you all is


Don't take any advice from me without checking it out, first.

Sometimes, I think I'm great and other times I think that I have 1 year's experience, 25 times over.

Especially, this 40 point bee that is currently in my bonnet.

Thanks for letting us now.That proves that there will always be unexpected things in it.

 

[BeginnerJoe]

And his position just keeps going the wrong way.
Next stop 6130.Ouch.

He still has until December for things to go his way, before the contracts expire. So plenty of time. The market could collapse tomorrow for all we know.

 

[wackypete2]

He still has until December for things to go his way, before the contracts expire. So plenty of time. The market could collapse tomorrow for all we know.

Or he could be like that deadbroke guy. His positions were so far gone even if the market had the worst collapse in history he'd still be underwater (on his DEMO account, of course).

Peter

 

[Hoggums]

He still has until December for things to go his way, before the contracts expire. So plenty of time. The market could collapse tomorrow for all we know.

He's living on HOPE. The hope that the market collapses before his account does.

 

[jezek5]

He still has until December for things to go his way, before the contracts expire. So plenty of time. The market could collapse tomorrow for all we know.

Nice one Joe,i was hoping someone would give an answer along
those lines.
The whole point is that every trade has to be seen as a 50/50 bet,
we have whatever reason to take a trade and have some idea of a target
but we also need to be aware of a level that would tell us that we are wrong,
admit that we might be wrong and get the hell out.
Price is so much easier to read when you're out of the market.

 

[bigmistake]

SL is very good for any traders, but sometime with the long trade, trade don't need SL for his trade. Since the long trade might get bearish market so set SL would make him get loss.

 

[chibiks]

anybody know how to use a stop loss order or limit order to prevent losses due to a gap opening?

 

[Hoggums]

use guaranteed stops (spread betting only). Otherwise there's not much you can do other than close you position before the weekend.

 

[Steven2805]

I think a stop-loss is needed on every trade your placing. One major move down and weeks even months of trading blown in one trade.

If its a volatile market consider using a guaranteed stop, but remember the cost evolved in setting it up.

 

[Knell]

Asking why you need a stop loss is the same as saying "Why do I need to use a seat belt in my car? I'm a careful driver!"

 

[thunderstruck]

He still has until December for things to go his way, before the contracts expire. So plenty of time. The market could collapse tomorrow for all we know.

Unfortunatley markets dont obey to the "law of Coelho "- "When you want something, all the universe conspires in helping you to achieve it"

and the markets dont conspire to your favor .

You cant fool yourself for ever with continuing roll overs - You have to close the position take the losses and reacces your strategy with your remaining money.

 

[BeginnerJoe]

You cant fool yourself for ever with continuing roll overs - You have to close the position take the losses and reacces your strategy with your remaining money.

You lack positive thinking. The OP still has 1 month to go for the market to collapse. The chance of a collapse is non-zero, therefore the OP might still have the last laugh.

Money doubling is not over until the account is blown.

 

[bigmistake]

I have traded without SL, some get profit but some LOST A LOT that I couldn't control it. Guys, my important advice is you should trade always with SL. If not, you will get an empty account when the market got bearish or bullist... Good luck.

 

[Steven2805]

Just look at any market and you can see massive down/up bars imagine that move goes against you. Could you manage with one or two of those per month. I know I can't, it would take a massive amount winning to earn back one major losing trade. Plus think of the knock back it would give you.

 

[forever_young]

Asking why you need a stop loss is the same as saying "Why do I need to use a seat belt in my car? I'm a careful driver!"

Good point! I tried trading without SL, but tired to see how my money just flew away...

 

[ashis_ch]

Guppy's "Count back Line" is a good measure of stop loss ...anyone using it ?..if anyone does how's the result ?

 

[bigmistake]

But you should take care about setting the SL, if SL is low, you get short lost but maybe then the market will reverse and you get a lot profit.

I know everybody remember have to set SL each trade but it's not easy to set a right SL. Capital Management is useful in this case.