How Much Stop Loss Are Appropriate?

[mikeyfxs]

The guys in here are too nice, answering every little question really.
But I think the only answer for such questions would be: GO THROUGH THE FREE SCHOOL/COURSES

Would understand it better anyway.

 

[dianajs]

That is how almost every trader put their SL/TPs at and that is what the dealers know and almost every time they go for the largest congestion zone of orders (they care about trading volume, not if you make or lose money). And that is why most SLs are triggered. Usually the SL should be way beyond such zones, but unfortunately, if you are wrong and the price moves against your position then your loss will be bigger. If you're right then your SL won't be triggered and you might get some decent profit.

Do you mean that in general or do you mean that happens during high impact events?
Most of the time I don't really trade the latter so I am not concerned about that, but when I do trade I do place my stop losses outside the support and resistance levels, not exactly on them. I too don't think it's a good idea to place them there.

 

[dylanliam]

i thing 3% stop loss enough.

 

[soldati99]

i think 7% is enough.

 

[dianajs]

I am curious about the reasoning behind these percents. As said, I calculate my stop loss level on a case by case basis based on supports and resistances, what is your thought process?

 

[lee33]

i think 2% SL is enough.

 

[Pharaoh]

2% is very reasonable, as long as you don't open other positions in effectively the same direction on correlated pairs.

 

[downtrend]

Set any amount in dollars that you can easily afford to lose per trade, then set your SL according to your strategy and adjust the lot according to that dollar amount.

 

[iMusingKiMi]

It still depends what you wanted to risk with your account. Our maximum drawdown are 5% on capital, so if 2% per trade is unacceptable for us. Hence, it does vary on what is your maximum risk.

 

[george91]

SL 1% is enough for new trader.