How important stop-loss order in forex??

[Nancy parez]

Stop-loss orders are placed by traders either to limit risk or to protect a portion of existing profits in a trading position. Placing a stop-loss order is ordinarily offered as an option through a trading platform whenever a trade is placed, and it can be modified at any time. A stop-loss order effectively activates a market order once a price threshold is triggered.

Traders customarily place stop-loss orders when they initiate trades. Initially, stop-loss orders are used to put a limit on potential losses from the trade. For example, a forex trader might enter an order to buy EUR/USD at 1.1500, along with a stop-loss order placed at 1.1485. This limits the trader's risk of loss on the trade to 15 pips.

one question have, which is, Stop-loss order: should I use?

 are critical for a multitude of reasons, but it can really be boiled down to one thing: we can never see the future. Regardless of how strong the setup might be, or how much information might be pointing in the same direction – future currency prices are unknown to the market, and each trade is a risk.

traders actually do win in many currency pairs the majority of the time.

Lately I’ve read few opinions that using stop losses is bad. I am not going to fight with everybody here. If some pro trader thinks that stop losses are not necessary then it is his choice. If he makes money, that is good. But if you are a new investor, struggling to close a year with a profit, than using stop losses is necessary.

Let’s say it clear and loud: stop losses are not perfect. It is not something that will make you rich or profitable trader. It is also not something 100% accurate. You set your stop losses and your stop losses are as good as good trader are you.

Stop orders are used to limit your losses. Everyone has losses from time to time, but what really affects the bottom line is the size of your losses and how you manage them. Before you even enter a trade, you should already have an idea of where you want to exit your position should the market turn against it. One of the most effective ways of limiting your losses is through a pre-determined stop order, which is commonly referred to as a stop-loss. If you have a long position on, say the USD/CHF, you will want the pair to rise in value. In order to avoid the possibility of chalking up uncontrolled losses, you can place a stop-sell order at a certain price so that your position will automatically be closed out when that price is reached. A short position will have a stop-buy order instead.

Stop-loss orders are a critical money management tool for traders, but they do not provide an absolute guarantee against loss. If a market gaps below a trader's stop-loss order at the market open, the order will be filled near the opening price, even if that price is far below the specified stop-loss level. For more information you can visit here.

https://tradersunion.com/interesting-articles/stop-loss-order-should-i-use/

[AkashHasan]

Stop- loss orders  are critically money management tools for traders but they not provide an absolute guarantee against loss. It is very important especially for the newbies who want to close his loss. Actually  forex is a technical business platform . You must know everything if you want to gain in forex market. Therefor, traders should have excellent knowledge on trading and choose a reliable broker which provides the best  support for the traders.

[uncle gober]

the use of SL and TP must be able to be considered carefully, this is needed so that traders can be more optimal in carrying out trading activities while on a real Tickmill account.

[Ross Edwards]

Many people wants to learn forex trading. But to know about forex is not an easy thing. If anyone wants to learn about forex,  TP Global FX will be the best option for him. In there, he can learn about spreads, leverage, withdrawn process, trading techniques, Scalping and many more things. I learn forex from them. It is quite easy to learn for the new traders.

[Resolve]

On 6/28/2021 at 1:58 PM, Ross Edwards said:

Many people wants to learn forex trading. But to know about forex is not an easy thing. If anyone wants to learn about forex,  TP Global FX will be the best option for him. In there, he can learn about spreads, leverage, withdrawn process, trading techniques, Scalping and many more things. I learn forex from them. It is quite easy to learn for the new traders.

In the business of Forex trading the main and the important factor is to be able to use our trading skills with SUCCESS 🙂

[papia09]

Stop loss is a tools of management for protecting losses from the trading but unfortunately it doesn't work 100%.  Therefore, before investing traders should gain enough knowledge on trading and practice in demo account and after getting enough knowledge and experience they should invest in real account. In addition, investors should choose a trustworthy broker like FreshForex which provides the higher leverages, bonuses, lower spreads and order executions within 0.05 seconds. 

 

[Resolve]

On 8/22/2021 at 2:54 PM, papia09 said:

Stop loss is a tools of management for protecting losses from the trading but unfortunately it doesn't work 100%.  Therefore, before investing traders should gain enough knowledge on trading and practice in demo account and after getting enough knowledge and experience they should invest in real account. In addition, investors should choose a trustworthy broker like FreshForex which provides the higher leverages, bonuses, lower spreads and order executions within 0.05 seconds. 

 

Wish you do such kind of trading techniques that can reduce the amount of overall losses in to our trading accounts

[Hanan Öberg]

It is not possible to manage risk without using a stop loss. It is very important to use stop loss to maintain money management and risk management. So every trader should manage risk and trade. It helps a lot in increasing the profit percentage in trading.

[David Meyers]

High leverage is risky. Because when traders overuse it there are high chances to lose if proper risk management isn't taken. Maintaining a trading journal makes it easier to spot mistakes. Many brokers like Eurotrader also offer e-journals. The broker also provides the best trading services including leverage up to 1:500, low and tight spread, and many more.
 

[Matheus Schotsman]

Stop loss is important for short term traders. It protects you from incurring huge loss. But you have to be expert in placing stop loss. Most newbies complain that if they place stop loss, market reverse after hitting the stop loss. It happens because they are not experts in trading. You also need a broker like Eurotrader that doesn't give slippage.

[Jo Eshuijs]

Broker platform should be check. Some are faulty to use. All traders are different. So, one broker can best for one and can be worst for another. Trader should test their platform in demo account. Almost all broker free demo account. My broker Forex4you also provide unlimited free demo account. I also start my trading from using demo account. I am still use it for testing new strategy.
 

[Mrsooduraske]

One of the most important benefits of a stop-loss order is that it is free to implement. Regular commissions are charged only after the stop-loss price is reached and the stock has to be sold. Stop-loss orders can be considered free insurance policies. A stop-loss order also allows you to make decisions without being influenced by emotions. Stocks tend to enchant people who are not seasoned investors.

[maspluto]

the use of SL and TP must be able to be considered properly, this is done so that traders can be more leverage in getting the security and comfort of trading in accordance with expectations together with Tickmill.

[Hanan Öberg]

Risk management and money management are very important in trading. If the trader cannot do risk management properly, he will never be able to survive in trading. And if you want to manage money, you must use stop loss. And stop-loss protects from unexpected losses in trading.

[Resolve]

On 9/11/2021 at 8:27 PM, Hanan Öberg said:

Risk management and money management are very important in trading. If the trader cannot do risk management properly, he will never be able to survive in trading. And if you want to manage money, you must use stop loss. And stop-loss protects from unexpected losses in trading.

We will need to understand the importance of doing our trades with the proper Risk Management and also proper Money Management.

[David Max]

Forex trading has the potential to become rich. There are many to earn money from trading. But none can become rich overnight. There are also no shortcuts but learning trading. So, gain knowledge and practice in the demo account first. The demo account is free and can trade with virtual money. It is best for learning trading. But I learned trading from my broker Tpglobalfx educational resources.
 

[maspluto]

Existing training and learning must be able to be considered properly, this is done so that traders can be more leverage in getting the security and comfort of trading in accordance with expectations with Tickmill.

[Resolve]

On 9/14/2021 at 8:07 AM, maspluto said:

Existing training and learning must be able to be considered properly, this is done so that traders can be more leverage in getting the security and comfort of trading in accordance with expectations with Tickmill.

If we want to learn trading from the foreign exchange market we should make more efforts and try to earn income.

[Sam Patrick]

I think the biggest mistake which have been done by almost all the Forex trader especially by the newcomers is start Forex trading without any target and without learning of this business. As awe all know in every business there are some rules and conditions and without learning there is no result a person can get. So, to achieve the goal of your business you need to invest time properly.  

Forex4you I think the most demandable broker as because they allow various motivational trainings for their entire clients so a newcomer can learn and an expert trader can achieve his target. This broker has simply made my trading life profitable by giving me genuine education of Forex trading and thus I have gathered good trading knowledge. 
 

[Nalmegda]

Stop losses are really useful in combing your risks while trading the market and I absolutely agree with the threadrunner here that every trade is accompanied by certain risk. Stop losses have some drawbacks which should be known by all the traders. First of all, they don't work when gaps take place. Secondly, stop losses are too accurate for trading. I mean that even a minor occasional fluctuation can make stop loss close the deal and rhe asset price will go positive right after it. It happens really often. However, still I believe that stop losses are nice tools for controlling your risks.