Stop Loss?? Don't Want To Use It. - 0 views

• 
  #1 johnarnold123 on 05 May 16

   

  Why would someone not use Stoploss? What could the rationale be?
  Stop loss during trading is also an important step to use, to avoid excessive
  loss. Then why is it you see, many a trader not use it. Let's try to understand.

  
  
  

  There are definite risks of using stop loss especially when placed
  at the wrong position during trading. But to say "No "to it would be equally
  rash. There are few points that should be considered while placing the stop
  loss.

  
  
  

  Do not place the same stop loss for all the trades. Understand the
  market environment. Ask help from the best forex brokers or from
  seasoned traders and place stop loss on each trade individually. Even when you
  are gaining, still do not hesitate to use Stop loss, keep your profit objective
  simple and do not be over ambitious.

  
  
  

  Stop loss should never be placed close to the current price, then
  it is a sure shot of ruining the trade. Similarly the stop loss should not be
  too far from the current price, it will be just like a mythical protector.

  
  
  

  The decision of where to place the stop loss is got through
  experience and practice and for a newcomer, a most difficult task. This is
  where the experienced forex brokers come into play, take their guidance, follow
  the examples provided to learn and improve. Chances are mistakes might happen
  during the placing of stop loss but as in life, you learn from it and move on
  being a better trader.

  
  
  

  The best forex brokers understand the forex technical trends and
  then help in placing the stop loss. Based on the type of analysis, decisions
  can be taken. There are few known tools or methods that can help you to use
  Stop loss option. Always use 10pip over or below the first parabolic SAR spot
  as a stop loss position. In cases, where the market has moved far, you could
  use 10pips over or below the previous day or day before that High and Low
  values to determine the stop loss positions. While using moving averages, use
  10pips above or below the averages. Elliot wave theory can also be used to
  analyze the market trends and in this case place the stop loss 10pips below the
  lowest point of the second wave, when you are long on wave three.

  
  
  

  These are just few suggestions and options available in
  understanding the option of Stop Loss. The best forex brokers can be your
  mentors in helping place stop loss based on your trading style and personality.
  The importance of a good forex broker comes in such situations.

  
  
  

  So the statement "Don't want to use it" is not just, in case of
  Stop Loss option. It is an essential part of trading, ever required to protect
  the trader from the sudden impulses that happen in the market which cannot be
  controlled when not online all the time.  It is an example of the
  importance of knowing where to place and when to place. Do use Stop Loss
  option, and be wise about it!

  
  
  

  For        best forex
  brokers         visit      http://www.intfx.co.uk/

  
  
                 
  
  
  

   

  <div class="cArrow"> </div><div class="cContentInner"><p>Why would someone not use Stoploss? What could the rationale be? <br /> Stop loss during trading is also an important step to use, to avoid excessive <br /> loss. Then why is it you see, many a trader not use it. Let's try to understand.</p> <br /> <br /> <p>There are definite risks of using stop loss especially when placed <br /> at the wrong position during trading. But to say "No "to it would be equally <br /> rash. There are few points that should be considered while placing the stop <br /> loss. </p> <br /> <br /> <p><a href="http://www.intfx.co.uk/" rel="nofollow">Do not place the same stop loss for all the trades. Understand the <br /> market environment. Ask help from the </a><b><a href="http://www.intfx.co.uk/" rel="nofollow">best forex brokers</a></b><a href="http://www.intfx.co.uk/" rel="nofollow"> </a>or from <br /> seasoned traders and place stop loss on each trade individually. Even when you <br /> are gaining, still do not hesitate to use Stop loss, keep your profit objective <br /> simple and do not be over ambitious.</p> <br /> <br /> <p>Stop loss should never be placed close to the current price, then <br /> it is a sure shot of ruining the trade. Similarly the stop loss should not be <br /> too far from the current price, it will be just like a mythical protector.</p> <br /> <br /> <p>The decision of where to place the stop loss is got through <br /> experience and practice and for a newcomer, a most difficult task. This is <br /> where the experienced forex brokers come into play, take their guidance, follow <br /> the examples provided to learn and improve. Chances are mistakes might happen <br /> during the placing of stop loss but as in life, you learn from it and move on <br /> being a better trader.</p> <br /> <br /> <p>The best forex brokers understand the forex technical trends and <br /> then help in placing the stop loss. Based on the type of analysis, decisions <br /> can be taken. There are few known tools or methods that can help you to use <br /> Stop loss option. Always use 10pip over or below the first parabolic SAR spot <br /> as a stop loss position. In cases, where the market has moved far, you could <br /> use 10pips over or below the previous day or day before that High and Low <br /> values to determine the stop loss positions. While using moving averages, use <br /> 10pips above or below the averages. Elliot wave theory can also be used to <br /> analyze the market trends and in this case place the stop loss 10pips below the <br /> lowest point of the second wave, when you are long on wave three.</p> <br /> <br /> <p>These are just few suggestions and options available in <br /> understanding the option of Stop Loss. The best forex brokers can be your <br /> mentors in helping place stop loss based on your trading style and personality. <br /> The importance of a good forex broker comes in such situations. </p> <br /> <br /> <p>So the statement "Don't want to use it" is not just, in case of <br /> Stop Loss option. It is an essential part of trading, ever required to protect <br /> the trader from the sudden impulses that happen in the market which cannot be <br /> controlled when not online all the time.  It is an example of the <br /> importance of knowing where to place and when to place. Do use Stop Loss <br /> option, and be wise about it!</p> <br /> <br /> <p>For        <b>best forex <br /> brokers         visit      <a href="http://www.intfx.co.uk/" rel="nofollow">http://www.intfx.co.uk/</a></b></p> <br /> <br />                 <br /><br /><br /></div>

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