When we can trade without stop loss?

vvovan

Private
Messages
25
wat problem trade witout stop loss?? it's not dificult as you think. just trade. that's all )))
 

Pharaoh

Colonel
Messages
20,070
wat problem trade witout stop loss?? it's not dificult as you think. just trade. that's all )))

If you LOVE flushing money down the toilet, feel free to trade without a stoploss. "Once in a lifetime" black swan events happen a lot more often than once in a lifetime. It doesn't even take a black swan to kill an account even if you keep your leverage at 20:1 All it takes is a major unplanned news event combined with stepping away from your computer or losing your connection to the brokers servers for a few minutes.

Unless you are trading 1:1. not using a hard stop is a very foolish idea. If you are terrified that the market will spike you, but your emergency hard stop beyond your mental stop, but close enough to limit the damage to your account. If you don't trust your broker to not spike your emergency hard SL, then change your broker.
 

bigdolly

2nd Lieutenant
Messages
1,133
If you LOVE flushing money down the toilet, feel free to trade without a stoploss. "Once in a lifetime" black swan events happen a lot more often than once in a lifetime. It doesn't even take a black swan to kill an account even if you keep your leverage at 20:1 All it takes is a major unplanned news event combined with stepping away from your computer or losing your connection to the brokers servers for a few minutes.

Unless you are trading 1:1. not using a hard stop is a very foolish idea. If you are terrified that the market will spike you, but your emergency hard stop beyond your mental stop, but close enough to limit the damage to your account. If you don't trust your broker to not spike your emergency hard SL, then change your broker.
Trading without stop loss is possible if you trade stocks without leverage. For blue chips it's pretty reliable assumption that their long-term direction is only uptrend. Even with 1:1 or 1:5 leverage you will wait for a black swan event (that will cause 50% and 20% drawdown respectively and wipe out your acc.) for a very long time.
 

Pharaoh

Colonel
Messages
20,070
Trading without stop loss is possible if you trade stocks without leverage. For blue chips it's pretty reliable assumption that their long-term direction is only uptrend. Even with 1:1 or 1:5 leverage you will wait for a black swan event (that will cause 50% and 20% drawdown respectively and wipe out your acc.) for a very long time.

I mentioned 1:1 in my first post. 5:1 would still be handing a chance of zeroing an account to traders who don't understand risk management.

Or, learn risk management well and how to use SL properly. Then you can use as much or as little of the crazy leverage your broker offers when appropriate.
 

Regalm_

Private
Messages
18
SL, I won't say it is necessary for trading. I skip using it some times, but yeah no harm using it as well. It is just an extra security against major losses.
 

Dutchy86

Recruit
Messages
69
The problem with stop losses is people usually set in similar areas and you will get whales taking out the sl so depends how well you can monitor your trades
 

nahiyar

Private, 1st Class
Messages
881
Stop loss is very helpful tool specially for beginners, it makes you bound to trade with a certain risk however its use should be very wise not set it to just some pips that hit very quickly your trading will not make profit for you. It should be monitor properly and change if you feel market is not same as you set SL and it can change your trading results.
 

Charlieboy885

Recruit
Messages
87
I wouldn't advise trading without a stop loss in place. It is key to maintaining good risk management. It needs to be calculated well and reviewed as the trade goes on, but I wouldn't advise trading without it.
 
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