Stop Loss: Limit Losses, Instead Of Accelerating Losses

I purposefully selected the topic of Stop Loss, as many traders temen-temen, especially novice trader (newbie) who "kapok" using Stop Loss facility. Most assume that the Stop Loss is "accelerating" loss and consider it as a cause of the negative results of the keladi open position taken so that capital eroded bit by bit. The reason is, many are ultimately desperate to trade without a Stop Loss.

 

 

stop loss

I say "desperate" because of the Stop Loss is actually functioning as the brakes for that learning to ride a bike. Imagine if people learn to ride a bicycle without brakes, yes the belurlah would. Trading without a Stop Loss is indeed a glimpse looks tempting, because we never felt "wrong position". Indeed in general prices are usually bobbing in a certain range, so at times it after the minus end we dapet floating profit too. In the end a lot of temen-temen newbie who thinks: weh, meaning secure doong. Now that terfloating position, ntar aja also finally profit as well. EITs, wait a minute, there are certain times when the price back in its original position after rocking the far enough.

So you want to get the plus 5 pips, previously floating minus 300 pips first? It also if there was still a "good luck" could be even more first Margin Call that comes from profit. Stop Loss was meant to protect us from losses too great. Lest we suffer "just once in a wrong position". Kok LAH, "just once in a wrong position"? Yes, that is just wrong position once trus directly subject to a Margin Call, aka trus abis abis capital, the kapok and retired so traders. OK deh, assume we already agree that a Stop Loss was indeed necessary.

Now the problem is, how the hell the right Stop Loss? Well, if it's to determine how pointyang right, frankly I dont bear to. I can only recommend that you try to pay attention to the following points:

• Trythe dailymovementrangeofclaypairs thatwe take.Eachpairhas a differentnature.For example:If forEUR/USD, perhapsSL30 pointsis enough,but if it'sforGBP/JPY?Weh,dahkesabettuhalsobriefly
• Alternatively,we can useparabolic SARdotsat the start ofa trendasthe benchmarkdetermination ofStop Loss
• Or, wecould wearthe levelson theFibonacci Retracementasbenchmarkdetermination ofTPandSL
• Onething is for sure, set theSLofhowdollar"who can affordwewilling"when wewrongposition

What I recommend above are just examples. Each trader has the right to mementukan the "fate" of his own. It all depends of the trading plan and indicators used by each trader.

Oya, there is one more thing that needs to be understood in connection with a Stop Loss. Magnitude range SL will affect the degree of confidence we will success achievement TP. mean? Put it this way ... I love the direct example of Yes. For example, the results of our analysis reveals the GBP/JPY will rise as much as 50 points. OK, we set the TP of 50 points. Keep, what about SLnya? When we determine the SL by 30 points, then the degree of confidence we will achieve the TP charge is around 40% for example, aka not too sure TP be achieved.

Now, if we add a SL of 50 points, the degree of confidence rose to e.g. 50% or fifty-fifty between the TP or SL was the kesentuh first. Now, if our SL plus more, being for example 150 points, then our confidence level up to 100% or we believe 100% that the TP will be achieved because SLnya far enough to kesentuh first. So the wide range of SL, the higher the degree of our beliefs that the TP will be achieved.

That is why, many traders are hooked to do Open Position without SL. Ya iyalah, "surely" is reached is TP, floating up to hundreds of pips negative also "maintained" by the TP 5 pips. The only limitation of the floating negative Yes only available margin. I've often joked with Dub this sort of traders as traders believers Stop Loss = a Margin Call. Well, actually it's the rights of each trader's, just, frankly, I was sad to see many temen-temen kena because traders who nurtured the MC because of trading without this SL.

My advice, better we soon figured out that we were wrong position and cepet-cepet fix. Usually, when it's already terfloating minus a lot of pips, we tend to not bear to Cut Loss. In fact resigned to wait for the arrival of a Margin Call berharap-harap anxiously while the price reverses direction. Believe deh, which like this dont awful loh.

Posted by Unknown on Thursday, February 12, 2015 - Rating: 4.5

Title : Stop Loss: Limit Losses, Instead Of Accelerating Losses
Description : I purposefully selected the topic of Stop Loss , as many traders temen - temen , especially novice trader ( newbie ) who " k...

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