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Thread: Stop Loss

  1. #1
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    Default Stop Loss

    Stop loss is a widely used order aiming mainly at limiting the possible losses in case of negative market movements.

    Stop loss is used only with open positions. When the market conditions are not favorable for a trader and the price has reached the level of Stop loss, the deal is closed automatically. Therefore, Stop loss helps the trader to control losses and in case of failures to keep safe at least the part of the deposit.

    If a trader does not use Stop loss orders, the position is closed by the broker when the sum of losses is equal to the sum of the deposit.

    There are 3 types of Stop loss orders: fixed Stop loss, sliding Stop loss and combined Stop loss.

    Fixed Stop losses are set while opening positions. They cannot be replaced until the deal is closed. Sliding stop losses, on the contrary, can be replaced any time depending on the price movement. Another name for sliding Stop loss is Trailing stop that can be replaced either manually or automatically considering the traders settings.

    Presently there are lots of discussions on whether it is necessary to use Stop losses or not. Some traders believe that Stop loss should be compulsory for trading, emphasizing the ability of Stop losses to prevent the loss of the whole deposit. If the price is rapidly moving in direction, which does not correspond to the forecast, the deal that has not been closed in due time can result in significant losses. The opponents of Stop loss believe that this order can limit not only losses, but profits as well. As the price movement is often unpredictable and unexpected, it can develop according to the traderís expectations though with some periodic bounces crossing the Stop loss line. In this case the position is closed with losses though it was a possible to close it with profit.

    As a rule, the decision on whether to use Stop loss or not depends on the individual strategy of a particular trader. Therefore, there is no single opinion on the necessity of using the limiting the losses.

  2. #2
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    SL is very important in forex because SL, the greater risks can be minimized by good. so we will be able to trade with maximal. without SL we are not able to control it better trading losses again

  3. #3

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    SL is important because it help keeping our money in account when we has bad time. when we open positon we can lose but we need control lose . SL is working great.

  4. #4
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    stop loss is a part of good risk management methods. with stopp loss then our trading losses will be smaller so that we will be able to trade with the maximum and good. with stopp loss then the MC could have minimal well as losses may have minimal

  5. #5

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    Its a good toll in forex specially for new traders, stoploss will prevent your investment from getting eroded in a wrong trade, placing it requires skill and experience.

  6. #6

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    Using ST is very important for a loss control. You can never be sure of market movement, Stop Loss protects us from the worst. You should never leave the position for night without ST.

  7. #7
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    We must set SL as well as possible if we want to get more maximal result in forex. Try use demo account to learn how to set SL when trading. We also can use demo account to improve our skills in analyzing market when trading. So let's maximize stop loss when trading as well as possible.

  8. #8
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    Forex can not escape from the risk, the risk in forex trading will always be there, therefore we need to have a risk by trying to trade using good Sl. With the SL, the risk that happening can be minimized

  9. #9
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    Stop loss prevents our capital from losing more and help us stay in market for long. By putting stop loss point, we are informing our broker that we cannot afford to lose money if it hits the certain limit or point in unfavorable direction. If you are not using the stop loss properly then you are not trading but gambling. Stop loss is a very good option for protection against the immediate heavy price movement of currency pair. We can define an accurate stop loss point by having a good analysis of the market.

  10. #10
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    Quote Originally Posted by tenkofx View Post
    Stop loss prevents our capital from losing more and help us stay in market for long. By putting stop loss point, we are informing our broker that we cannot afford to lose money if it hits the certain limit or point in unfavorable direction. If you are not using the stop loss properly then you are not trading but gambling. Stop loss is a very good option for protection against the immediate heavy price movement of currency pair. We can define an accurate stop loss point by having a good analysis of the market.
    SL will help us to minimize the risk. We must limit risk if we want to earn more maximal result in forex. SL is good tool to minimize the risk, but although we use SL for trading, we must keep understanding the market movement in forex

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analysis, automatic, broker, demo, deposit, forecast, forex, forex trading, how to, investment, learn, level, profit, real, safe, stop, stoploss, strategy, system, time, tool, trader, trading, trailing

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