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Trading without stop-losses

Discussion in 'Beginners Bootcamp' started by Jack Francisco, May 14, 2012.

  1. Jack Francisco

    Jack Francisco Private

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    Using the stop loss is very important because it's help all traders to limit their losses and protect their account to avoid lossing the capital and i advice them to use also the money managment and risk managment because they have lot of benefits and advantages.

    But what is most importantly is the size or the volume that you have to enter? I mostly close my trades manually. When I am confused about the market, I enter with low lot then if it gains profits, I will re-enter at appropriate price with normal lot and if it goes against me, I close it out. This way I won't be getting high loss. This works great for me and also increases the profit potential with low risk.
     
  2. ladytrader

    ladytrader Private, 1st Class

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    Yep, that's one good strategy, but if you like to play it safe (i like to play it safe myself). What I'm trying to say is that the best strategy is the one that suits YOU, so it's always smart to figure out hwo you like to move in the market, not just only follow others strategies. Unless you're using EAs, for instance, thats another story - I do it myself as well.
     
  3. FringFX

    FringFX Sergeant

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    whichever way you trade, with or without stops, well it can be done successfully.
    You just have to make the necessary adjustments, test it out, and trade accordingly.
    The most important thing is do what you are comfortable doing.
     
  4. ladytrader

    ladytrader Private, 1st Class

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    I personally think its suicide to trade without SL, but whatever strategie suits you best... Demo accounts exist exactly for that.
     
  5. FringFX

    FringFX Sergeant

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    not necessarily suicide.
    for no SL trading, the ideal trading position and/or leverage is very small. This way, a massive move is just a small drop in the bucket. And ideally, the hit rate is good.
     
  6. Lyndylulubelle

    Lyndylulubelle Private

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    I personally never trade without placing a stop loss. Stop losses are a golden rule etched permanently into my trading plan. They work beautifully in partnership with my equity management rules. I would not sleep at night otherwise :). That said, I am a conservative trader and like to know the ratio of risk to profit.
     
  7. Obi Wan Bakari

    Obi Wan Bakari Private

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    WORD!!!!!!!!!!!!!!!!

     
  8. itkraze

    itkraze Private, 1st Class

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    It is very very necessary to trade with a stop loss, you can try this in your demo account if you don't want to use stop loss, you account will vanish time after time.
     
  9. Whitesnake

    Whitesnake Corporal

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    If we do not place the stop loss then the odds are that we may lose the entire account due to huge drawdown and thus the risk involved is very much high when we trade without stop loss.
     
  10. FringFX

    FringFX Sergeant

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    Losing the account could happen if a trader trades without stops, as well as use high leverage and position size.

    But I have heard of a few traders who trade without employing stops. They seem to be trading with very low leverage and position sizes. With experience, they haven't lost their accounts the last time I've checked with them.
     

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