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Stop losses. A necessary evil?

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Stop losses. A necessary evil? in General Forex Discussion_xx
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.
#31 - February 07, 2019, 12:28:02 PM

  • Stop losses. A necessary evil? in General Forex Discussion_Brad_Pitt
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The use of stop loss is indeed a good choice to minimize risk but actually there are still other ways to minimize risk by using cut loss, only to be able to use cut loss we must have a much better psychology compared to the psychology of traders in general. Cut loss is a strategy that requires controlled psychology and good mentality.
very right guys, with cut loss can also be made a wise decision, but this affects someone's psychology whether it is capable and ready for cut loss, as you say not for ordinary traders, this requires mature flying hours that dare to take a cut loss, but in my opinion a stop loss is better
#32 - February 07, 2019, 03:44:44 PM

  • Stop losses. A necessary evil? in General Forex Discussion_Brad_Pitt
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Stop losses. A necessary evil? in General Forex Discussion_xx
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.
#33 - February 08, 2019, 01:19:05 AM

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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
#34 - February 08, 2019, 02:39:40 AM

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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



#35 - February 08, 2019, 07:16:10 AM

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in my opinion Stop loss is an important part of forex trading. Stop loss is very useful for securing our trading account. Since I was disciplined using a stop loss I have never experienced a margin call again
I haven't even tried it, and I've never used a stopless trick. can anyone teach you how to use it
#36 - February 08, 2019, 07:54:06 AM

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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
stop loss is very important to be a limitation when the market occurs a large market movement that is not in accordance with our previews, at the beginning of the year I have a few positions in the AUD / JPY pair fortunately when placing Stop loss try if I do not place a stop loss I might spend 50% of capital.
#37 - February 10, 2019, 06:30:57 AM

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Losses in forex. Definitely can't be avoided. All we can do is reduce or limit our losses.
With good financial management, we can minimize it. Limit your losses, that is a reasonable thing
#38 - February 10, 2019, 06:55:03 AM

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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.
i always use stop loss, but i use it for manual trailing stop. 
#39 - February 10, 2019, 07:01:58 AM

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stop loss is a choice and my choice is to use it, I am grateful for trading, there is a sl feature because it can increase losses in trading
#40 - February 10, 2019, 04:44:26 PM

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stop loss is one of the important things in forex because in trading we do not know the worst that will happen so that by losing our stop loss we can lose
#41 - February 11, 2019, 04:10:23 AM

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stop loss is not our barrier for SL profit to minimize our losses.
#42 - July 27, 2019, 03:29:49 AM

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if the installation is correct, stop loss will save our position.
#43 - July 27, 2019, 05:36:04 AM

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if the installation of the stop loss is incorrect it may indeed be dangerous but if appropriate it will be very useful.
#44 - July 27, 2019, 06:04:50 AM

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stop loss function is to minimize losses so not to reduce profits if the placement is correct.
#45 - July 27, 2019, 07:24:12 AM

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