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The point of a stop loss is to restrict your loss by shutting the trade just as the market goes in the opposite direction. You may opt for a halt loss or a trailing stop, but just make sure you use one.
Can anyone describe to me Stoploss works exactly?
Show us your result by means of a stop loss afterward. Hopefully you have two years worth being profitable using stop loss.
I don't like sl, and when it ends up ) It is better when you shut a situation with tp))
But at the same time I can not imagine the thriving trading without limit orders...
Trading with no stoplosses is potential. It occurs to the people who have huge funds and whatever they're risking is moderate. It's also possible once you're buying few minutes trades you have entered and think they are certain in ranging markets.
I personally trade without them in these conditons and it does work best for me. In conditions I use them.
Without a SL/TP ratio are you planning to calculate risk:reward? Chances are you are just moving the problem by using a SL to using the margin call. Should you do so check what your broker margin call would be. Avatrade closed my account with a debt due to an error in their own price feed.
SL might also be done by time factor too.
If you are getting stopped out all of the time you have a problem that needs to be dealt with. The furniture is simply shifting around a bit. This is the problem I have. What I'm doing about it is reducing the number of transactions by going for 1:6 risk:reward or even better, which is a very rare thing. I'm also attempting moving the entrance to where the SL was and also changing my attitude.
Just how many transactions does one must jump to find a good one? 100? 1000?
That's one of those problems, you just don't understand until you have traded it, it's always a game of probabilities, and raising the probability of being in a fantastic trade.
Totally agree with your statement. But we must manage the risk properly.
That is accurate, we ought to manage our risk properly. I had also forgot to mention that we should be aware on the risk reward ratios as well as break as soon as the transactions go to profits then path the markets in profits. That will help us gain massive profits from a trade. An Individual may even reserve more than the anticipated goals of TP:-)
Stop loss is the automatic order to cut your losses fast whenever your psychological pressure does not allow your finger to press the near button.Sometimes, traders assert that if I didn't use stop loss the market would turn in my direction and make profits. This is a very big myth.Stop reduction order is a must. It implies direct Money and Risk Management itself.Wherever you look on the net you find Money management techniques with suggestion of Reward to risk 1:3 and this really is actually the definition of reduction itself, too.It's preferable to use 3:1 Risk to Reward because you are utilizing the Forex volatility in your favor and using an unbiased analysis (= not biased from brokers' interest I mean) you have much much higher chances for constant profits!So, the solution is ONE and onlyUse Unbiased analysis and not the analysis provided from Brokers' because even if they advertise to be STP they are not (= All brokers are market makers even if you want it or not) and additionally use the volatility parameter in your favor i.e. 3:1 Risk to Reward - Use both parameters in your favorRule that the market and do not leave brokers' to play youHave a wonderful day!
THATS why thay call it hedge fund NOT stop loss fund
That the prof on you tube correct but put Far too much afford to Describe and the follower Reduction in action
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