How Much Stop Loss Are Appropriate?

[Froso@FXNET]

Depending on our capital and lot we decide about stop loss pips. I mostly use 20 to 30 pips for stop loss not place it in hundreds pips It may hit and 100 pips loss would be my share. I have to check market time to time to close my position if it is against my trading.

 

[nahiyar]

Very nice strategy to use stop loss is that you choose it according to market situation , capital and lot size. I use more than 50 pips stop loss with small lot and upto 30 pips with normal lot size . Most important thing is that your analysis should be good so that your stop loss not hit you should go to profit side.

 

[TaniaIslaam]

I truly believe that there are two options you MUST take. We must use right level of risk/reward ratio through correct lot size; I generally keep it to 2/3% which keeps me safe. But if you like to take risks then you need to use STOP LOSS, if you don’t then it will be extremely tough to avoid margin calls especially if you go little here or there and a major event takes place which you might not be aware, it could take you to 100-150 pips minus in no time!

 

[iMusingKiMi]

I think it can be vary depends on strategy and time frame to consider as appropriate. I believe some trader even say that putting stop loss will be hunt by certain broker.

 

[ForexVerified]

I truly believe that there are two options you MUST take. We must use right level of risk/reward ratio through correct lot size; I generally keep it to 2/3% which keeps me safe. But if you like to take risks then you need to use STOP LOSS, if you don’t then it will be extremely tough to avoid margin calls especially if you go little here or there and a major event takes place which you might not be aware, it could take you to 100-150 pips minus in no time!

And we've seen in the past that major events can happen out of nowhere, and sometimes even wipe out your account in a second if the lots used are larger compared to the size of the account.

 

[iMusingKiMi]

And we've seen in the past that major events can happen out of nowhere, and sometimes even wipe out your account in a second if the lots used are larger compared to the size of the account.

This means the trader doesn't plan well with his own money management. Just ask him whether he can go sleep at night if there are some position in account? I believe no and it is tiring trading without money management.

 

[Makenzie Malachi]

Actually it differs from trader to trader. The percentage of risk and exposure varies from trader to trader. If you read thousand threads you will see different % in every thread. Most of the time newbies set wrong static which is the reason of their loss and most of the time they loss their money. Unless they got proper knowledge they can’t set their exposure in right level. Unless you gather enough knowledge you have to try different exposure different time.

 

[Devraj]

S-L is a significant part of trading. We should not trust only own intuition. So, to set stop-loss property you should decide what is your risk management in %. for example, if you have 1000USD and your lot is 0.1, you will risk your 1USD for each 1pips. To strict 2% risk you should set your S-L on 40 pips with maximum loss allowed - 40USD.

 

[Great]

Personally, I think that the stop loss can not be set the same as the take profit. Otherwise, such expectations may not be profitable. It's better to go to zero than to lose a lot. So I always put a stop loss twice as short as a take profit.

 

[nahiyar]

Yes I also think like that both sides should not be the same . You should set it according to market movement. I mostly set take profit at less pips and stop loss at some higher pips than of TP. All traders do their own decision as they think it best for them. But much pips for stop loss is not recommended .