How Much Stop Loss Are Appropriate?

[dianajs]

One has to find the balance between setting the SL too close or too far. Set it too close and any random movement could close your position, set it too far and the SL becomes useless.

 

[Mike James]

It means you are using stop loss wrongly. No one can say you how much stop loss is appropriate. It depends on trading strategy and style. You just can't put a small stop loss or big stop loss. It's the demands of strategy and market. By studying and practice you have to find your own trading edge.

 

[dianajs]

It means you are using stop loss wrongly. No one can say you how much stop loss is appropriate. It depends on trading strategy and style. You just can't put a small stop loss or big stop loss. It's the demands of strategy and market. By studying and practice you have to find your own trading edge.

How do you place your stop loss? Do you have any set strategy about it?

 

[Devraj]

It means you are using stop loss wrongly. No one can say you how much stop loss is appropriate. It depends on trading strategy and style. You just can't put a small stop loss or big stop loss. It's the demands of strategy and market. By studying and practice you have to find your own trading edge.

Ys, it all about risk ratio and money managing and depends on difference of market situation. If you trade medium and long term so it's more comfortable to use wide s-l and t-p. And vice versa, during the scalping it's more comfortable to use close s-l and t-p to catch small fluctuations.

 

[Morten]

I used trading signals when I noticed that they set a leverage closely and the stop loss threefold further. I didn't like it. According to statistics, they had more profitable deals and this is clear. However, the income statistics was worse.

 

[Aubrey Aubrey]

Actually trader have to define their appropriate stop loss. It is kind of formula which varies from trader to trader. To set appropriate stop loss you also need to set exposure of your business. Stop loss is shortly know as SL. It is the combination of the percentage of stop loss and exposure. Like IO set 2% as my SL and 6% as exposure. Like I said it varies not only from trader but also for trading style.

 

[Naxramos]

From my own experience, I can say that stop loss is one of the most important risk management tools, without which it's just impossible to trade conservatively.

 

[Morten]

This function is used by practicaly all the experienced traders, as well as the newcomers who learn and try fo use it before trading. It's quite convenient and practical.

 

[Nisoro]

Stop loss is an aid to stay away from huge losses if one knows how and where to place them. Many experienced traders suggest to put them according to the risk/reward ratio. SL depends on the amount of money you want to invest on a currency pair.