Hi Malsonee. This is in your own brain...all of it. You've got the answers, the charts are sceaming, but your subconscious radar is not tuned in just tet. This game is all about losing, YES LOSING. tHE markets are random as hell, so don't worry too much about your stop, you don't even need one if you get good. Use a SMA....simple. Knowledge is power when it comes to trading, so read anything related to the financial markets. Study charts for 20,000 hrs (not just 10,000) and you will live a life that most normal people don't. Good luck buddy! (hey get back to us all after 15000 hrs of study, you'll be making us jellus...im sure)
Not bad, i will try it out. Do we still need a large real stop when we are using "mental stop" in case there is an NFP style price movement?
Are you using an ATR indicator to set your stop? Can you explain in more detail on how you set your stop by looking at the ATR reading? I am a beginner in ATR.
Thanks for the advice. Do you mean setting a stop by using SMA? How can we do that? Yeah, i will get back to you after studied the charts for 15000 hrs. This should be not easy, if a spend 12 hours every day to study, i should need 3.5 years to accomplish that.
Hello everybody. I'm new member from Italy. Part time active trader on Forex spot. How much stop loss... interesting topic! My experience follows: 1) Yes stop loss. No Mediate. Hedging.... sometime but i do not really believe in it. 2) Your set up should dictate the stop loss. In other terms stop loss should be technical one. 3) Stop loss should be outside the standard volatility in the same time frame. 4) Most important. Stop loss is the max loss you decide to tolerate in the trade. This should be a small part of your trading account. Ideally 1% or below.... If This is contraddition with N° 2 or 3... than reduce size...
About the point you mentioned on "hitting the large stop loss and ending up with great losses", that is actually exactly what a stop loss is meant for. If not for it, you might have had MEGA losses compared to great losses. So remember, a stop loss is meant to well, stop your losses. When it is hit, it has saved you from a potential catastrophe. The only situation where this is different is if you notice over time that every time you stop loss is hit, the price rebounds. In those situations, it might be better to take a step back and readjust your stop loss strategy Hope that helps! I'll be glad to discuss this further if need be Cheers, Desmond
MEGA losses, nice word. Any advise on how can i avoid the situation when stop loss is hit and price rebound?