Real Fx traders do not use stoploss - Page 2
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Thread: Real Fx traders do not use stoploss

  1. #11
    Quote Originally Posted by ;
    hi guys,

    I've heard that pro fx traders who don't use stop losses and this had contributed much controvesy. Anybody who approve or disapprove please remark
    pro fx traders (the kind that operate at banks, which it seems like you are speaking about) DO utilize stoplosses. They dont put a stoploss order, but they've a mental stop. Why they dont actually set the order ahead of time is because they sit in front of their monitor whilst trading, plus they have disapline when they want to to get out. They have a fantastic feel for order flow because they are on a trading desk.

  2. #12
    I concur with what the others are stating here. Where your loion stops depends on your trading style, but if you do not have a stop-loss at all, then there is a true risk is that you are reluctant to admit that you are mistaken. No stops generally equals a risk of ruin.

    I have levels at which given current conditions, I'll allow the market tell me I am wrong, as I would like to be about to fight the next day.

    Even if you are eager to eliminate the top of your spine, do you want to risk losing your car, home, and possibly your family, as you barrel through the doorways of the poorhouse?

  3. #13
    Hello Friends,

    It is possible not to use a stop loss and stay safe in your account. Forex is a business rather than a escapist egy , neither is it a programme made to place anyones life. In case you failing and have been trying to trade without a stoploss you have not been doing it. If you are utilizing stoploss ,it may even be a source of more reductions,you enter into a transaction ,it strikes your stoploss and reduces your equity, thenyou input again it strikes your stop loss ,which makes it seem as if your acct is growing and reducing at precisely the same rate. PLEASE this advice is not for everyone. . .it is for all those people who are ready to accept the bitter truth.it is not for scalpers,it isn't for traders who trade below the 1hr period frame.it isn't for people who exchange fundamental but people who use it as a guide .Pls note that this.

    Before I let you in on 1. You must have a trade entry and exit judgement. What I mean is that you have to atleast understand market trend,wave patterns ,support and resistance levels. You have to know your chart not some mad softwares or EAs or the use of indiors. . .no.2. You must have patience, you must have the ability to watch some standing go for even days against you and shut them or you will not have to add anyother commerce. You must have the same patience to see a trade go back to acquire and becoming to a take profit not or running away with little if any reduction -. 3. You must not necessarily be in a hurry to make withdrawals from the account since this isn't a fantastic company believer....cancel the framing of visiting your capital in the platform as water onto a hot frying pan on fire. Instead start seeing how you can produce your platform your bank.If you are with an excellent broker your account is really safe.

    Let get functional,


    With a leverage of 1: 500 ,in case you've got an account of $100000 and you use a minimum of 1lot or a maximum of 5 lots on that account without stoploss. There is absolutely no way that the account will get blown out. And no more transaction is added by you when you reach that maximum. Even though it is going to take weeks be your own style, if a transaction goes againt you wait patiently for it to recover. . .that was why I said this post is meant for people who actually know the rhythm of market flow not only for everyone.Its not to thosewho will exchange agaisnt the trend or for people who claim they know market bottoms and tops. Now for an account of 5000 utilize a minimum lot of 0.05lot plus a maximum lot of 0.25 per commerce. If you enter the transactions and it does not give profit don't input more transactions to transcend your lot. WAIT WAIT WAIT . It is painful to wait ,however, wait patiently. Learn to view open position in negatives and believe that and provide profit.

    If you can do this for a period of 3 weeks to 4months you are going to understand that you'll never wire funds for your brokers again you may only be employing for withdrawals of your profit.In the process of waiting you could be studying your chart,research how to spot better commerce opportunities and with the waiting you'll start seeing yourself as a developing traditional trader who know what he's doing. It is not a crime to manage funds for individuals ,even with this method it's possible to manage individuals funds but let your investors know that ....You aren't in a hurry and they should also learn to wait. It is possible to not loss a dime from the account with this technique instead you will see your account balance and equity growing steady. For this method is very slow. Even if you would like your profits to experience a continuos compounding in the rate of 5% ,10% or 20% for this technique. . .There is a method so that you don't get in to trouble, the calculation is done. NOTE if u use the normal compounding formular you'll crash and start regreting you have to continue with forex.

    I have one final thing to say,

    It has really gone along way to help me and that I think if will help you too

    It is a good idea to utilize pending orders instead of instant execution if you have doubt about your entry.Personally I set my pendings 15pips away so that I do not get trapped

    If you trade EURUSD,GBPUSD,GBPCAD along with other pounds associated pairs If there will be a news events on GPB 4:30 am EST don't trade during lodon available,instead wait until after the news is declared.

    Don't always believe that the tokyo session maitains the same commerce range

    Don't also believe market goes up during london and comes down through US or another way round....let me stop here

  4. #14
    Hello Friends,


    This is a continuation of my last article ,on how not to use stoploss and be an effective trader. I keep saying that studying this post is dicretionary..it isn't appropriate for everybody. In my previous post I mentioned those. This can be for traders who understand where they are in the Big picture of this tide of the market.To be precise this post is intended for traders who once they input the majority of their trades, they obtain their entry hit their stoploss first just for them so see exactly the exact same price after sometime go back to hit their take profit price and this happens to them frequently,in case you have been experiencing this, thenthis post is intended for you.

    Forex isn't designed to frue anybody but the way we go about it is what puts us in trouble. If you don't want to utilize stoploss then there is a bigger price that you must cover ,a price even bigger than those using it but the fact is it pays at last. I am a FX trader from Nigeria I had to learn equity management. I had in the past made lots of dreadful mistakes and at a point I had been quiting but I had to ask myself. What is it that makes me different from a man who dresses up and goes to a Job daily. The answer is he is convinced of getting his cover. So I started researching . How can I create my platform a bank and not a condiut for outflow of money.

    For a beginner , I had been a believer of the use of stoploss...I used to use them regularly. I shall make some fantastic pips , enter transactions and receive my entrance hit my stop loss. I reducing and was growing . .it was like I was like the market didn't want me to triumph....why does it keep hitting my stoploss.I know support and resitance prices but the one fact I didn't want to tell myself is that noone could predict the market with a 99% accuracy.... I will get struck just after some hours I shall see prices go to hit my TP price. I was able to conclude that utilizing stoploss was a manner of lossing my cash. It only slows the way ,the cash has been burnt but it will eventually get burntThis tells me that something has to be wrong somewhere.I now asked the question is there anyway I can trade safely with no stoploss and head to sleep or travel. I started examining it in my trades.

    When it was in the past I do not see anything wrong in using a 0.1 or 0.2 lot trade an account of $1000

    some ideas will cross my mind ; you are 90% sure of the trade use 0.3lot or 0.5 on a $1000 you may get more money with couple of pips

    But today I cannot try this way because if you'd like to be among those who don't utilize stoploss and trade succesfully you cannot trade like this, in case you do,you will be worse than somebody who complains of the identical stoploss issue

    This is it, to me it was very hard to accept.

    An account of $1000 utilize no less than 0.01 lot and a maximum of 0.05 for every open position without having any stoploss.

    If your entry doesn't give you profits immediately but negative values unwind ,don't add more trades when market price is 100 pips or 150pips from your entrance. Unwind I know it is painful to see rolling bye and you cannot enter a trade. Let your patience be the price you pay for every entry. If it will take 4days. WAIT, WAIT ,WAIT

    Should you add more trades above your highest lot entrance when you are with an open position in profits or open position in losses then you are violating this rule .Then your not utilizing this method you are practising something different. Dont call Gods name in vain if anything else goes wrong.

    Someone will say that this is crazy, why can I never enter more trades when prices will be 100pips off and'm sure price will retrace to my entry point. Thats is really where the problem begins by means of the system.When you try this until you know it you have more than the maximum pip dose. If you compute market will need to move about 2000pips unidirectionally before your account may get blown out and that's impossible but you won't enjoy this type of market tolerance should you boost your lot size beyond the one prescribed previously. For the man who always likes trading every oppurtunity he sees....This is what to do so you don't get in to trouble.

    If you're using $1000 the maximum lot is 0.05
    divide it into 5 parts if this is the only means you may use this method
    0.01 0.01 0.01 0.01 0.01
    you can utilize two during london and 3 during US or 3 Throughout london and 2 during US or Tokyo
    or you may use them at your trade spaced interval but it should not be above 0.05

    For an extremely certain trade use 0.05 at a stretch but on times where we've High effect news events such as unemployment, Nonfarm payroll please divide it and utilize at intervals.

    Please be aware it is only when the amount of 0.05 placed trades have contributed profit that's when you input new sets of trades.
    I understand exactly what'm speaking about ,there are times you will be tempted to simply take a chance but please dont. You will determine that you remain sane. If your doing this you may be confident to tell people who you are a trader. For an account of 5000 use 0.25 max

    Do not be in any rush to close any position making losses wait and watch them come into yourside in the Future

    Learn to classify your account to 2 phases SUPPORTING STAGE AND MATURITY STAGE I will elaborate more on this in my article

  5. #15
    There are things we do as traders,that are incorrect in God's sight.
    In spite of the fact that we discuss greed,we look not to see when we are greedy. Greed to a FX trader can Hide below figures. You have an account of $5000 and you say I want my daily target to be 25 percent .It is great ,it's acheivable peolple do that. You won't ever be egorized as greedy till something goes wrong with your account. The greed could come in in a single day,it could come in in an hour. You think it . You would like a new car, a new house , you want people to know you trade FX that you want to be the new talk in town....another thought links up that, you may hear your mind saying and simply tired of the 0.05lot am using on this $1000 dollar account. Allow me to take this risk with a very tight stoploss I want to earn 100% or 50 percent daily,until you understand it the account is at the red.We all discuss greed .it is time we start screening everythought that conveys a figure in it and how it will influence our trading. Each account has a growth phase. I've heard and seen people blown a newly financed account in a day, I am aware of those who have dismissed and account in a week, I am aware of somebody who blew up an account of $100000 at every week ,In my times of naivety I've dismissed account of $1000 at the same day,for a lot of individuals no account has lived over 2weeks. Some will just dump if they touch it, since they know . . .it is gone.Nothing will happen to it if they don't trade.


    It's time we start seeing our accounts at GROWTH PHASES

    1. SUPPORTING PHASE 2. MATURITY PHASE

    Supporting phase is when you see your account as a baby. Maybe for you it's newly financed or somebody simply gave you the account to manage.You know that in life you cannot feed a baby with an extremely major spoon or give a baby a large chunk of meals or food that is too pepperish. . .the same applies to every new account. You can even name your accounts. Sill , emmaneul,okocha,chioma,obama and so on Then when you blow then out you murdered someone training them.In the encouraging phase of your account ,you need to give it all of the support it requires by making certain that you don't give it more than it can carry. Don't go beyond the prescribed lot size.

    If you're a funds manager ,your customers will always ask your baby--your account.

    By way of instance , where's Okocha? ! In how many times?
    Please don't get me wrong to kill means to blow your baby account

    it doesn't just make sense when we cannot train a baby and bring it up to adulthood stage.

    Go through the pain of visiting your account create little little profits
    Go through the pains of witholding from withdrawing the little profit you have made since your account hasn't yet gotten to that MATURITY STAGE
    At the Supporting stage quit dreaming about that Big House ,that gaudy car,that adorable girl,or creating huge contributions at acts and quit thinking of adding more money by bank wire or some other method just as to increase your earnings. Always believe that the account by times it's stayed with your level is not yet mature.
    It's a terrible habit to view your funds in the trading platform as plain water on a hot skillet on fire ....it is bad . (You know if you don't eliminate the water if water is about a skillet on fire it dissappears) As if somebody is over there trying to eliminate it from you. If you keep your greed in check your money will grow up in your platform it will be there day in day out thus far you are using an excellent broker.

    Stop abusing your equity because your baby account of couple days has a major balance.You know quite good traders if they can start small and grow big. Don't say because you are handling an account of 100000 then you decide to use 50lot or 100lot you are killing that account along with your self since the day it does happen it will leave a memory in your lifetime as a whole.I have done that on demo in the past using 50lots I fostered $100000 to 1million dollars in 1 month however If I return I will say that is crazy. The same as in life ,their parents are a few teens who show some excessive rapid expansion, they have quite big bodies and they appear like adults but they are not, you simply notice they are not yet mature by their judgements and actions.some parents may erroneously give those sort of teens the liberty to take certain decisions . That's precisely the way accounts are . .you can be given an account of $200000 and you jump up ,saying good bye to poverty forever....just that same week you started using 500lots , 100lots ....that is mad....There is a problem you have not attracted a growth cycle for your account.Even if your balance is Substantial that people not mean that the account in your hand is not in a baby phase. Take it this way an account of $5000 which you took pains to rise to $100000 is at and old a mature stage in comparison with a $100000. DO NOT TREAT THEM THE SAME WAY. This is some money manager enter trouble,they can even withdraw from an account that they have not made a dime from believing that they'd make it back . . .it is FX ...2.9 trillion is floating in the atmosphere. How do you know an account is getting close to MATURITY STAGE


    2. MATURITY STAGE. This account has lots of expertise it's endured from micro lot dimensions and has gotten so many market oppurtunities, it's been able to double its own capital and is likely to get the capital off the platform .it is a product of endurance and patience, It's gotten to a stage when even if withdrawals are manufactured it does not disturb the trader at the slightest. Take for instance an account of $5000 if you decide to withdraw your capital, grown into $ 100000 you does not shake in anyway. In the event you decide to withdraw $30000 ,it won't also shake you ....that is an illuion of a mature account.

    If you compare it to an account of $100000 grown into $120000 and you decide to withdraw 10k , you have not even made your capital....it shows you are not a good investor, you are not ready for the FX enterprise.

    A mature account is an account that grew from little state atleast $1000 to a uncomparable amount which cannot shake your emotions even if you are making withdrawals from it everyday.

    It's an account that can er for a protracted family and can sponsor projects and will still be running and it's still taken the prescribed lot size.

    Maturity of an account does not mean that you can use a massive suicidal lot size on it ,NO . It simply mean that the account has gotten to a stage of no return. . .where it can start giving birth to unique accounts .

    Celebrate whenever your account survives for a month, celebrate whenever your account survives over 2months . . .it means you are consistent....keep celebrating.You can even celebrate it without so much as letting folks know why you are observing it so that you don't get distracted.

    In all, an extremely straightforward and humble life will go along way to help you as a trader. Thanks for your attention God bless you.

  6. #16
    I suppose some people do not but you are constantly running the risk of wiping your entire account blank. Surely you shut out at a certain point. Rather than ripping out your hair, might be better to evaluate the transaction and set a SL

  7. #17
    Keep in mind your money management, in considering this.

    As we all know, it takes money to make money. If you are letting money sit in your account, it is not making you whatever. Your balance is online, when you make a trade. In the event the trade moves against you, you lose equity. You lose the capability to exchange, if your equity goes too low.
    Simple, correct? It is something most of us know about our accounts work. We use prevent losses to keep our transactions or whatever period you want to use to describe them. Is it possible to trade without a stop loss? Yes. Should you're trading with no one? Not if you exchange the way folks on this forum tell you to.

    Humility has the money management dead-on for how to trade with no stop loss. Forex likes to tendency and it likes to range in a trend. For those who don't understand it implies the price bounces up and down a bit even while the overall trend is down or up. This implies that if you are trading with the tendency when price moves against you there is a fantastic possibility it is going to come back to profits for you if you can ride it out. Until it ends, the trend is your friend.

    The biggest problem with trading this way is what happens if you go long and price reverses daily. Let's say it begins. Do you've got the courage to sit and watch your equity drop as your trades go deeper and deeper in the red? If you are investing do you stand the notion of only being able to exchange up to a maximum lots on the market in the exact same way as your winners? It may be months or years before price comes back to where you need it. If you are buying a living, can you financially afford to allow it to run like this and not be making the large transactions?

    Trading this way, you will never capture a losing trade. The only problem is that if you have a failure, it is probably taking a huge chunk of your account with it.

  8. #18
    I personally dont use stop loss in 80% of my transactions, as my trading style is scalping, so I must react on changes . . Only when I exchange on big supports or resistances I use stop loss . . I believe that it mainly depends upon your trading skills and trading system (scalping, intraday trading or longterm trading)

  9. #19
    This is a statement There is not any thing that is FACTUAL, that you should/shouldn't do. What works for you - works for you. It shouldn't work for everyone/anyone else and can't. Using or not using SL is an issue of your trading style. I didn't use them, but then I began. And I like it. It is an issue of currency pair, volatility, trading session etc., whether you ought to use it and how distant in the place price should it be. But to answer your question - no and yes.

  10. #20
    I must put something here. Forex is a company you intend for before you get into it . The same as anyother company....Someone was telling me that if a person uses the aforementioned prescribed system in my very first article that one cannot pay overhead price.

    If you want to do the forex company,particularly trading without a stoploss that requires lots of patience and plogical equilibrium ,you ought to have calculated your overheadcost first and earmark money for it(cash not even frm trading)and not wishing that when the company starts that you'll immediately begin withdrawing in the account to maintain the company going....it will have an impact on your trading plogy by that way and you may be forced to take some uncalculated risk at some points just to meet up overhead price because there are sometimes market won't only move the way you anticipate. I am sounding this way because some account may take 6months to get to adulthood for withdrawals but If you do not place your discipline that way you'll find out that you'll always have the impulse to withdraw each and every pip which you've made. It's possible to earmark cash that will insure your overheadcost for 6months whenever your account is mature you will understand how to balance out things. We do lots of things that set us under stress ,which is incorrect and won't help our plogy onebit.But if you anticipate the account to fuel the company immediately,then you are not prepared. Except you are in the company for long and your accounts are mature enough to gut your expenses.

    Hedging with this particular style.

    I understand that it isn't feasible to get all your trades right. And if you are not likely to utilize stoploss if a trade doesn't give instant profit as expected it could be a source of worry but I am going to keep saying WAIT WAIT WAIT

    I will only recommend hedging in the event your entrance went the incorrect way if only you realize how to utilize hedging to your benefit and if it won't get you distracted from the primary trend.

    If you are employing an account of 1000 I constantly advise that you utilize a maximum lot of 0.05.

    However, in the event you love hedging and cannot wait to only see those large pip space stuffed up, then divide your 0.05 into two places before you begin tarding, use half of it as your very first lot launching , then use half to hedge incase market goes against your prediction.After which do not add anyother trade.

    You will find out that you haven't surpassed your maximum lot that's 0.05

    I strongly advice using 1 hr ,4hrs and daily and monthly chart for this technique
    and will also advice you stay off trades at the start of a month and also the end of a month because the monthly candle will give you a false signal .Allow the market to settle .

    I know it's painful to WAIT WAIT and WAIT but you must ask yourself that why is it that it required a lot of peolple close to 6 to 15 years before they began making consistent profits....if you can answer this question then you will see why you've got to take it slowly today so that you do not have to stay that long before you begin making consistent profit.
    With time your account will be saving lives and financing huge jobs

    Lastly , in forex you will find two manners the street shot and the road never taken

    Tk care and God bless you

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