When we can trade without stop loss?

[iMusingKiMi]

There are some good traders in China, but people in any country who jump into the stock market "because it can only go up" are best described as incipient liquidity providers.

Wow, I learned a new words today. "Incipient Liquidity Providers". Yes, I do agree with you and really a lot of them. A lot of company here taking advantage due to those participant lack of knowledge and start to provide so called sure profit signals. When those company got caught by regulators, they found out most of those so called signal providers who are farmer, fruit seller etc. The point is they can still scam over million of CNY here.

 

[Eva_Lee]

For my understanding, the S/T can always leave as blank, but balance would down to blank soon too!!

 

[Pharaoh]

Wow, I learned a new words today. "Incipient Liquidity Providers". Yes, I do agree with you and really a lot of them. A lot of company here taking advantage due to those participant lack of knowledge and start to provide so called sure profit signals. When those company got caught by regulators, they found out most of those so called signal providers who are farmer, fruit seller etc. The point is they can still scam over million of CNY here.

What? The guy with the cart full of fresh tomatoes who told me not to use a stop loss isn't really a forex guru?

 

[nahiyar]

Stop loss is optional tool you can use it any time or skip it from trading . It is a offer for you if you want to make secure your positions from unlimited loss. Other wise you can directly monitor trading and close it at a point which you think is suitable for you. In scalping I do not use stop loss.

 

[downtrend]

If you are using too much of a small lot size, then you can trade without stop loss, but that should be on experimental basis, you can still trade without stop loss if you want to risk your entire account on a certain trade.

 

[iMusingKiMi]

What? The guy with the cart full of fresh tomatoes who told me not to use a stop loss isn't really a forex guru?

Yeah, really true. Their stance is by using probability as well, but instead of trading probability, they will market their signals by calling their clients. It is easy to provide such signals when you have more than 2000 listed stocks. There must be some stocks gain by the end.

 

[Pharaoh]

Stop loss is optional tool you can use it any time or skip it from trading . It is a offer for you if you want to make secure your positions from unlimited loss. Other wise you can directly monitor trading and close it at a point which you think is suitable for you. In scalping I do not use stop loss.

And if your internet connection drops just before the market makes a big move against your positions, what happens?

Let's say your scalping comes with a "mental stop" of 10 pips (maybe more, maybe less - this is an example). In that case, opening each trade with an "emergency stop loss" of 20 pips puts the SL far enough out that most brokers won't try to spike it, and only lets you lose twice your initial risk in the case of a connection failure. The alternative is that you could get reconnected and find yourself 30, 40, 50, or even more pips down.

Better yet, if you trust your broker not to play games, putting the SL at 10 pips in this case means it executes instantly when price moves that far. If there's a sudden move while scalping, you may not be able to press the close button before the price is 12 or more pips negative.

 

[ForexVerified]

And if your internet connection drops just before the market makes a big move against your positions, what happens?

Let's say your scalping comes with a "mental stop" of 10 pips (maybe more, maybe less - this is an example). In that case, opening each trade with an "emergency stop loss" of 20 pips puts the SL far enough out that most brokers won't try to spike it, and only lets you lose twice your initial risk in the case of a connection failure. The alternative is that you could get reconnected and find yourself 30, 40, 50, or even more pips down.

Better yet, if you trust your broker not to play games, putting the SL at 10 pips in this case means it executes instantly when price moves that far. If there's a sudden move while scalping, you may not be able to press the close button before the price is 12 or more pips negative.

Very true. I know real life examples when that same thing happened - opened a position without stop loss and the internet dropped. The only solution was to call a guy who logged in on the first guy's account to close the order. Murphy's law in action.

 

[arigoldman]

Hedge fund managers use stops, i mean come on!

 

[downtrend]

Hedge fund managers use stops, i mean come on!

There is a huge difference between hedge fund managers with millions of dollars at hand and a retail trader with few hundred dollars for trading.