Thread: Real Fx traders do not use stoploss

It depends on individuals, stoploss is essential for newbies, because they lack of expertise, survive should be considered. But for veterans, or called actual Fx traders, if they understand well or earn a accuract judement about prospective tendency, temporary lost is accepted for far more profit.

I believe stop loss has nothing to do with if you're a professional trader, pro trader can use stop loss or hedge or whatever suits their egy.

Because Humility explained that it's better to use max of 0.25lots for 5000 within an account with 1:500 leverage. Please, what's the perfect lots dimensions to use in the event of 1:200 leverage with an account of 5000.

After trading forex unsuccessfully for many years, I have finally invented a egy that's been making me consistent profits for the previous 7 weeks, and I must mention that this egy that I'm using doesn't have ceased loss. There are other ways to mitigate the risk of the market going against you, other than having an actual stop loss.

If you aren't winning with stop losses, how about turning that around. Just take the flip side, ie. buy low. And rather than quitting losses, cease winnings - since if you purchased low then there's no losses to think about about.

There is a lot of eduion but you need to think about who's supplying the eduion. Why are brokers spending $$ million on eduion? Do they have something to gain, perhaps by being around the other side once the stop losses execute?

The market is broken up into asia,us,london/euro sessions. These sessions have close and open. If you are trying to figure when to stop wins, then perhaps you could build something about these sessions opens and shuts. Perhaps they are called open and shut because the experts are opening trade and then shutting the trade. Only a thought.

Now I don't say this is without difficulties. I really don't trade intraday myself (yet atleast). The general thought I have is that if I hope to make $X/year (as suggested by forward testing), then it's fine by me if something crazy happens and I lose a couple of months profits. Maybe more. You could use choices to insure against this having read about them I have become quite confident that using alternatives as insurance from some fantastic transfer that happens once in blue skies simply is pricier than taking that huge hit now and then. By big hit I suggest you sell Y value of CHF and then 30% are gone up by CHF. Position size such that after dropping 30 percent on that 1 trade, you are still making enough % a year to make this worthwhile.

You may also think stop losses keep you from getting struck with such 30% reduction - well it did not stop those around the CHF trade from dropping - stops execute as market order after stop price is hit. Also those who expected to enter into the trade, well they did not get their profit either because of same reason. Infact, Currency futures do not even offer stop mkt order (there's stop LIMIT - however that I would not leverage 40x with the idea of the protecting me). I have a feeling the stop order was invented as an reply to the fear caused by using lot of leverage. Ideally you could have unlimited leverage (infinite margin). But as long as we don't, the secret to leverage is to only use it once you have practically inside data.

There is usually those situations once a year on average - some news that will take big move and lots time to be priced in. Example: I happened to ch a news about gold that made me move LOL now it is going to crash and burn off... And it went without even retrace. Same happened with eur/usd this past season - it wasn't quite as obvious but you just develop a feel for it observe the weekly chart and ch some news that's odd. There was no news about BOJ QE last october but I figured that this one simply by looking at just how large JPY had been (and timed using calendar). (the way you depart a long-term position? A long-term trend could opt for year or more. I would say, once you got it moving, keep it going until there's news that indies it is going to undo. - remember there are SWAP/interest costs to consider with leveraged position trading - therefore once a powerful move stops, if There's considerable swap price entailed that's it)

Ok, I'll chime in on this important topic

The truth is, in case you've got a certain system that requires xTP and xSL then of course you want to use that program's parameters. That being said, if you're a trader that has a certain perspective of where the market is going within your specific trading period period ( the time you intend to be in the market) then in the event that you place a stop, the likelyhood it'll be hit is quite strong, end of story period.

*This being said, if you're a new, newer or still learning trader, it's better to place ceases than shed 1/2 or your whole account. So the Solution is YES, NO and PROBABLY.

Idealy exactly what a trader would like to do is the ability and skill to predict the true current leadership of the market, put in your postion and TP and depart.

A mental stop loss is very important as no one understands the future and a trader needs to know when he's incorrect.

Having a stop loss a part of cash management and risk management.

Since past 3 months I start paying some cash to take courses and I saw the defiance between the free coruses (YouTube,forums,broker classes as well as the paid courses)

it's completely difference and it will open you attention in new and actual items that can work in FX with a few instruction.

So I advice everyone to stop getting the free lessons and cover something for you business with PRO only

to attempt to find a diamond in the garbage( I do not mean the forum but at the internet there is dozen of garbage that will destroy you mind.

Originally Posted by ;

since past 3 months I begin paying some money to take courses and I saw that the defiance involving the free coruses (YouTube,forums,broker lessons along with the paid courses) it's completely difference and it will open you attention in new and actual things that can work in FX with some training. So I advice everyone to stop obtaining the free lessons and cover something for you business with PRO only to attempt to find a diamond in the garbage( I don't mean that the forum but in the net there's dozen of garbage that will ruin you mind.

There's nothing that any paid course can teach that is not already freely available.

They might not use stop loss per se but they do set in place some kind of loss control mechanism for risk management.