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Use long term support as stop loss while going long


yogeshwartyagi

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My strategy right now is hedging, averaging and naked trade and one thing I learn is how to trade in forex without using SL. I know many will going to say you need to use SL to support your account and not going to get MC. but for me the best way to preserve my account is to trade via hedging and the best way to make good income is via naked trade and averaging.

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I also do a trade without ever using SL because I thought it was just going to spend money do I have slowly and I prefer to use a system that I think pips defenses strong enough to withstand minus floating and I do not have to worry about the security of my trading account as I already have a strong capital defense

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If you go long then its better you going to do hold and wait strategy. What the point of using SL in long term support level if you going to make long trade also? SL is use to minimize loses. If you want to trade long term then its better you trade using hedging strategy. In this way either way the price will go you will going to earn and you will not going to worry to get MC.

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Using long term supports does reduce the probability of unsuccessful trades but at the same times risks you to loose far more in a single position if your Stop Loss is hit. The best strategy when long time supports can be used is when we are looking for some good amount of pips profit and are ready to risk big amount of pips too.

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indeed for a long-term trade we should use trading system with a very strong capital resilience than we have to put a stop loss because it will only make us a greater risk, and we should also have a good stock to trade long-term though floating minus happened very large on our trade will not affect the durability of capital that we have

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for those who have big capital is not so influential with the losses suffered when using long trade because of the advantages they get too big, but for traders who have small capital is very risky once using a long-term strategy for the capital they use not in accordance with their will MC natural. therefore for merchants who only have a small capital should not be used long-term trade to avoid big losses

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Using long term supports does reduce the probability of unsuccessful trades but at the same times risks you to loose far more in a single position if your Stop Loss is hit. The best strategy when long time supports can be used is when we are looking for some good amount of pips profit and are ready to risk big amount of pips too.

Of course it does. The more you can support your position longer the more chances you can survive and once the price recovers then you can still end up in profit. Having low capital means you can't support yourself for a long trade and that means you can get MC even with just small pips movements. But if you have good funds you can actually surive and make good profit in the long run.

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especially right now once the price action in the foreign exchange market is very difficult for us to understand because of some problems occurring in the country so that if we impose a long-term trade using this strategy should be prepared to have a large capital resiliency that did not experience a very large MC , therefore if we want to trade safe especially for newbie who only have a small capital is now better to use strategies SL / TP that has a small risk compared to long-term strategy.

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Free margin is the best way to check if your account can support your position or not. Becuase once we reach 100% free margin chance are we can't open new position anymore. We can close some position but we can't open new position. My strategy in this kind of trade is simple don't open too many position or don't open big lot size and always make sure that you don't trade aggressively.

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I do not think it would be easy if we do trade by opening many positions especially if capital is used very little would be very risky because you can bet one of those positions would make losses cause actual position will actually closed due to favorable capital that we have not covered loss. best way if we only have a small capital is to look at the price action of a currency you want us to open and use short-term strategies to avoid risk.

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  • 1 year later...

best shown delay and pay attention to is correctly if we are generally capable associated with hesitation, really the opportunity at the end associated with today but another day remains to be lengthy and don't previously hold emotions which are most crucial. lest right up until our investment capital depleted as a consequence of our emotions.

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It is definitely the best to use the long term supports as stop loss but the problem with that sometime is that you may have to risk so many pips if the support is far from your entry point.

Well, using long term support might be the best for some traders but definitely not for me because I grow emotional when I dip down in pips. I can't really risk so many pips before I take profit so I prefer to set my SL closer to the support and resistance.
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It can be used but it depends on what kind of strategy we are going to use. I normally prefer not using any stop loss since I have good money management plans so I am okay even if I don’t use stop loss but it can be a good way to control the risk for newbies.

 

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I see your point over there, using long term resistance level as stop loss isn't it? But that is only for selling not for buying. Actually it is depend on trader's view, i myself prefer this way before but does not work in most of my trading, using resistance and support level actually does not have high accuracy so that is why it must be completed with other indicators.

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  • 4 years later...

The credible broker first of all we must ensure for our trading, to ensure a comfortable trading life with certainly, in Forex market if we want to get maximum. Because, broker plays a vital role in our trading life with certainly. A reliable and solid broker I select who always ensure high security of funding, wide range of deposit bonus, no restriction for pending orders, risk management techniques, smart bridge technology etc.

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  • 2 years later...

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