The Importance of stop loss in forex trading.

[Runcinate]

I can never think of trading without using an appropriate stop-loss strategy. It knocks my socks off when traders say that they don’t use it.

 

[Scalium]

If traders focus on lowering risk, it can help them move further and achieve their goals. Many fail to manage risk and money and lose, causing them an early exit which can be avoided by placing stop loss at the beginning of their journey. Understanding the sentiment of the market and having an end goal is important before placing SL.

 

[Cataclasm]

I believe that using a stop loss while trading is as important as fastening your seat belt before driving a car, it’s for your own safety. Those who tell you not to use it are just fooling others and nothing else.

 

[Arrogate]

I can never think of trading without a stop loss as that would mean I can’t take my eyes off of the screen. A stop loss is like a safety net for a trader. I also use TP as it allows me to exit my trades at the right point.

 

[Abdulmajidkhs]

I agree with all the comments here. Undoubtedly, your stop loss won’t let you lose more than you want to. But what if you had better chances of making money but a little market fluctuation triggers your stop loss? Won’t that be a waste of a trade? Just a thought!

Hello dear trader please I just want ask you if you know something about WikiFx website and their services?

 

[peter9461]

A stop-loss (SL) order is used to automatically close a trade when the price reaches your set price level. It indicates how much money you are willing to put at risk for a single trade. The stop-loss level is typically set in the opposite direction of your trade. Meaning it is put below the entry-level for long trades, and above the entry-level for short ones.

 

[Stratocracy]

I think placing stop loss in every trade is an integral part of risk management. Cutting your losses early is as good as making profits for a beginner. In this way, you can focus more on learning without worrying too much about losses. You should set your stop loss levels at optimum and limit your risk per trade to 2% of capital to limit the account drawdown.

 

[Pinnace]

Stop loss is an essential component of risk management. You will have one less thing to worry about when you trade with a stop loss in the right place. I have seen some traders promoting no stop loss trading strategies but I can never think of trading without a stop loss no matter what.

 

[Herisson]

Stop loss is a must as many beginners lack the understanding of market conditions and are still figuring their way around the marketplace. They need to focus on minimising risk as much as possible to stick in the market longer than most. By placing stop loss, newbies can save their capital to an extent and figure out new ways of gaining profit income. Btw, those are some great points! thanks.

 

[Scarious]

How would you trade if you don’t have capital ? The market is prone to sudden swing and high risk. To overcome its negative consequence on your account, you should preserve it, and this is where stop losses help. If you set a stop loss, then your order gets automatically closed on levels that are pre-set by you.

 

[Polakandil]

I need to stop loss to manage the risk, but not all strategies need to stop loss, such trading strategy like as basket trading strategy do not use stop loss, but near to use the correlation between pairs.

 

[Dopper]

Imo, stop-loss or trailing stop must be implied to the trade even if the trader is 100% sure about his trades. Moreover a trader trading with margin should never neglect using stop. This could lead to significant losses.

 

[Wavemeter]

Trading market can move drastically. You could encounter losses or blow your account if you don’t have good risk management. A stop loss is a part of risk management. It helps trades in saving your capital from such swings by automatically closing your trades on time.

 

[Affusion]

Newbies should place stop loss to lower the risk on each trade they enter. Without stop loss, chances of ending up with an empty heart increase causing them low self morale and they lose interest in trading. It is a part of risk management and it gives traders time to learn the market better.

 

[HoboSociety]

I’d say it’s a shield used to cap losses on a deal. It automatically terminates a losing position when the price reaches a certain threshold. Forex markets can be quite dangerous if not properly protected. Using stop loss and limit orders can now help protect our capital

 

[Textuary]

Stops are an important part of forex trading because they help you limit your losses. It is the stop when you sell your currency pair. This price is usually below the price you paid for the currency pair, and it acts as a limit to your losses.

 

[Apogee]

Without a stop loss, you risk blowing up your account and losing all of your money. There are times that we as traders, no matter how professional, make mistakes. Risk management measures, such as stop loss, prevent mistakes from becoming a calamity. For example, if I leave a trade open overnight and the prices hit my stop loss, it can terminate the deal before I lose all of my money.

 

[Tambour]

A stop loss is a sort of automated order that traders use to close deals when the price of a currency pair reaches a specific level. It aids in the protection of capital and earnings. Stop Loss is utilised because it protects you from losing more than your initial investment, provides an easy approach to manage risk, and aids in avoiding large losses.

 

[Christopher Hanson]

I’d say it's the most important tool in forex trading. Without a stop loss, your account may blow up and you’ll lose all of your money. We all make mistakes as traders no matter how experienced we are. However, risk management measures such as stop loss prevent mistakes that lead to losses. When you cannot monitor your trades, stop loss will do the task for you. It exits the position automatically and closes the trade.

 

[Idealism]

I’d say it's the most important tool in forex trading. Without a stop loss, your account may blow up and you’ll lose all of your money. We all make mistakes as traders no matter how experienced we are. However, risk management measures such as stop loss prevent mistakes that lead to losses. When you cannot monitor your trades, stop loss will do the task for you. It exits the position automatically and closes the trade.

True! The first rule of forex trading is “focus on protecting your trading capital before focusing on making profits.”