Stop losses. A necessary evil?

Hi all,

We are all told that trading without a stop loss is like driving without a seatbelt .... But is that true? Do you keep a journal of your trades and if so how many times have you correctly predicted the movement of an instrument but lost out because your stop was hit before the price moved in the direction you initially thought?

I'm not suggesting that you abandon common sense and forego good money management, I'm merely asking if it should be the 'go to' tool that we use it as.

I suggested somewhere else that there were other options but my views were attacked as heresy. My alternative was to split an order up into parts in an attempt to avoid an outright loss ... For example, assuming that after your analysis you place a buy on an instrument of .10 units at x price and your stop loss is 20 pips below that ... wouldn't it be practical to put say 0.05 units on at your price and another 0.05 units at  the position where you would have placed your stop loss and then an actual stop loss further away allowing you more room for error.

I'm not saying that this is the only answer and would love to hear about any other tactics you might employ.

Hi all,

We are all told that trading without a stop loss is like driving without a seatbelt .... But is that true? Do you keep a journal of your trades and if so how many times have you correctly predicted the movement of an instrument but lost out because your stop was hit before the price moved in the direction you initially thought?

I'm not suggesting that you abandon common sense and forego good money management, I'm merely asking if it should be the 'go to' tool that we use it as.

I suggested somewhere else that there were other options but my views were attacked as heresy. My alternative was to split an order up into parts in an attempt to avoid an outright loss ... For example, assuming that after your analysis you place a buy on an instrument of .10 units at x price and your stop loss is 20 pips below that ... wouldn't it be practical to put say 0.05 units on at your price and another 0.05 units at  the position where you would have placed your stop loss and then an actual stop loss further away allowing you more room for error.

I'm not saying that this is the only answer and would love to hear about any other tactics you might employ.

like it or not. using stop loss is a must do if we do technical analysis as a trading mapping. if it feels it's still often touched. then there must be a fix from our trading method. use stop loss if you use technical analysis. and use MM if you use fundamental analysis.

before trading, you must create a trading system that is sufficiently tested and quite resistant to successive losses, so that when you step on a real account we can move faster and nimble in dealing with all the possibilities that occur. in each forex will open a position must set targets and limit losses as well as a minimum presentation of the risks that must be borne so as not biased. with good management, the losses will be minimal and the profits will go as far as expected

stop loss is the key to avoid something that we dont want in forex market, like flash crash, news etc. Do you still remember with flash crash that happended in early of january 2019? what do you think if we dont put stop loss there, of course your account wil get blown. So i think stop loss is very important

Hi all,

We are all told that trading without a stop loss is like driving without a seatbelt .... But is that true? Do you keep a journal of your trades and if so how many times have you correctly predicted the movement of an instrument but lost out because your stop was hit before the price moved in the direction you initially thought?

I'm not suggesting that you abandon common sense and forego good money management, I'm merely asking if it should be the 'go to' tool that we use it as.

I suggested somewhere else that there were other options but my views were attacked as heresy. My alternative was to split an order up into parts in an attempt to avoid an outright loss ... For example, assuming that after your analysis you place a buy on an instrument of .10 units at x price and your stop loss is 20 pips below that ... wouldn't it be practical to put say 0.05 units on at your price and another 0.05 units at  the position where you would have placed your stop loss and then an actual stop loss further away allowing you more room for error.

I'm not saying that this is the only answer and would love to hear about any other tactics you might employ.