When we can trade without stop loss?

Pharaoh

Colonel
Messages
19,691
Beginners should not forget the use of stop loss. It helps a lot to them to manage accounts in bad situations that they are not ready for. After some experience they can do trading without stop loss. What they feel appropriate they can add tools in.
A lot of experienced traders did very badly during the most recent SNB-CHF event. I personally took some unpleasant losses during an earlier surprise SNB intervention while I was testing an EA which didn't use stoplosses.

Since then, the only time I've ever skipped using hard stops was during some minimal leverage swing trades that lasted over 1 year. In the end, I'd have come out far better if I had put hard stops in place.

I can't think of one legitimate reason to not have a hard stop on each and every trade. If you don't trust your broker, put an emergency stop twice as far out as your mental stop (assuming you use a reasonable level of risk in your mental stop) while you look for a broker which won't hunt your stops.
 

Rizog

Private, 1st Class
Messages
118
Without loss you can trade only in the case of constant market monitoring and still it's quite dangerous because there could be a one second breakthrough during which there will be a deposit loss if it's small.
 

dianajs

Private, 1st Class
Messages
778
Without loss you can trade only in the case of constant market monitoring and still it's quite dangerous because there could be a one second breakthrough during which there will be a deposit loss if it's small.
Even if you're monitoring the market constantly you could lose your internet connection and then it'd be good to have a stop loss in place just in case.
 

nahiyar

Private, 1st Class
Messages
731
That is really a big problem when your connection is not fast and disconnects again and again. You can not find your exact trading result because you will miss some move . Orders will not execute in time , even in seconds market can change from profit to loss.
 

alextrader79

Another multi and employee of JustForex
Messages
307
That is really a big problem when your connection is not fast and disconnects again and again. You can not find your exact trading result because you will miss some move . Orders will not execute in time , even in seconds market can change from profit to loss.
Even if there are no problems with connection, setting stop losses is never superfluos , especially even you have a certain strategy
I always set them
 

dianajs

Private, 1st Class
Messages
778
I used to have some major internet connection problems, especially during stormy weather. That was one of the major reasons why I developed the habit to always place a stop loss to begin with.
 

sadip.tammat

Spamming from the offices of JustForex
Messages
28
Scalpers don't use stop loss, they just don't have time on it. They don't really need it actually
 

AlecR

Corporal
Messages
73
One way of doing trading without stop loss is hedging and the other way is to arbitrage at next support and resistance level. For second way you must have good equity or you will loss good money.
 

dianajs

Private, 1st Class
Messages
778
Scalpers don't use stop loss, they just don't have time on it. They don't really need it actually
Scalpers are mostly an exception. Not to mention that not nearly all traders do scalping. Come to think about it, It'd be interesting to see statistics how many do scalp, how many do use stop loss, etc.
 
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