How should you set stop loss

[novarisa]

@dolgart: Well that is fine too, but you may meet your SL faster rather than me where i don't apply that amount , i do recommend 1/2 of your SL based on your TP. So with 60 pips TP you put then you should put 30 pips for SL or if that is 80 pips for TP then 40 pips for SL.

 

Personaly, I always put 1:1 ratio of SL and TP on each trade I put no matter how many pips (it's always depending on my analysis about how far the price will move)

[pepy]

After looking at several posts above I tempted to post about this. It seems like after some poor experiences with forex, I chose as novarisa did, so 1:1 ratio for me. My SL weren't far enough usually at 30-40 pips so do my Take Profit and based on my observation TP at around 30-40 pips is easier to reach than bigger TP such as 80-100 pips.

[Dolgart]

I think if put ratio 1:1 you will loose your money soon ))
In what cases SL can be more than TP?

[radex78]

After looking at several posts above I tempted to post about this. It seems like after some poor experiences with forex, I chose as novarisa did, so 1:1 ratio for me. My SL weren't far enough usually at 30-40 pips so do my Take Profit and based on my observation TP at around 30-40 pips is easier to reach than bigger TP such as 80-100 pips.

Maybe have too long target will hard to achieved, and required more patience to waiting, and put risk reward ratio 1:1 is still general ratio, but maybe different trader have different setup, if any trader they use risk reward ratio 1:2 hence they will learn also how to determine best timing on early trend beginning, and what the best hence each trader will have own experience using their strategy

[pepy]

Yes,it will make live harder because of that very high dream which maybe need more time or we simply cannot reach it but if you were able to reached it then it pays off. 1:1 is not general but the lowest ratio that you should set. Your profit will be equal to your losses, thus minimizing more risks. The ideal one is 1:2(SL/TP) since if you make profit once you need two losses to get nothing.

[Levie]

to point out stop loss level, depend on traders strategy. if traders use scalping technique, probably will set fix stop loss with tight level. but if traders use long position strategy in trading, will set wide stop loss level.

 

[radex78]

 

to point out stop loss level, depend on traders strategy. if traders use scalping technique, probably will set fix stop loss with tight level. but if traders use long position strategy in trading, will set wide stop loss level.

 

Yes long term plan usually also use higher timeframe like as daily and weekly, but short term trading usually use small timeframe like as 1 hour or 15 minute timeframe so stop loss level also will look on support resistance area on these timeframe, but some trader might they use fibo line to set stop loss level

[pepy]

As for daily some of my friend(offline one) prefer around 30-80 pips but usually at 50-60 pips at most. As far as i know it should be at around 30-100 pips and it should be lower than your TP, to be exact it should be as half as your take profit. Some traders set it after trade or for few hours after trading so if condition is turning bad they simply cut the loss before lose more with stop loss.

[aliforex]

As for daily some of my friend(offline one) prefer around 30-80 pips but usually at 50-60 pips at most. As far as i know it should be at around 30-100 pips and it should be lower than your TP, to be exact it should be as half as your take profit. Some traders set it after trade or for few hours after trading so if condition is turning bad they simply cut the loss before lose more with stop loss.

I think every trader have own way to set SL and TP when trading. And surely we also must be ready when our trading result is loss. But from this experience, we also can try to evaluate to more understand about forex trading.

[radex78]

Personaly, I always put 1:1 ratio of SL and TP on each trade I put no matter how many pips (it's always depending on my analysis about how far the price will move)

I think it's good alerady set stop loss and target profit with 1:1 as risk reward ratio and we can learn from mistake if often hit stop loss and to develop strategy we need patience to determine entry point and not only based on tempted by movement of price, and how to set stop loss and target profit might we can trying use script

[pepy]

1:1 is fine,i agree with traders who use it because that wouldn't be so much also you won't lose in big numbers if you cannot recover on the first or second trading. But if you want the best still 2:1 is the best, at least if you lose once or twice and the third you are in profit then you can recover back your loss.

[Levie]

any traders I am sure have different parameter to set stop loss. the level depend on risk reward or previous support or resistance level. the key point is traders not set stop loss too tight which causing it to get hit many times when market spikes and very volatile.

[myregister]

any traders I am sure have different parameter to set stop loss. the level depend on risk reward or previous support or resistance level. the key point is traders not set stop loss too tight which causing it to get hit many times when market spikes and very volatile.

I heard something like that with technical traders they use resistance or support level at the last point for SL. This make a sense since there are many circumstances that the price move towards resistance or support, but for fundamental traders i am sure they will choose different way.

[Levie]

This is a question that most newbies ask and of which, a concrete answer to it is quite difficult to find. There is no specific point one would say he would set the SL and it will be the best area. Just as it is best to set it close to the support and resistance, it can also be best from our analysis, that is how we can dictate the best point. 

[radex78]

In forex trading still important to maintain account with proper risk management, which here as trader will using stop loss in their trades, and maybe each trader also have own rules how to determine tis strop loss, many trader said on support and resistance area, and some said using risk reward ratio at least 1:1 at least if target 20 pips hence strop loss also 20 pips also

[pepen supendi]

This is a question that most newbies ask and of which, a concrete answer to it is quite difficult to find. There is no specific point one would say he would set the SL and it will be the best area. Just as it is best to set it close to the support and resistance, it can also be best from our analysis, that is how we can dictate the best point. 

Most of our SL and TP settings come from our own analysis when placing an order on trading platform. You might want to set few points above the Resistance points or below the Support point. It's all up to our own analysis

[novarisa]

Most of our SL and TP settings come from our own analysis when placing an order on trading platform. You might want to set few points above the Resistance points or below the Support point. It's all up to our own analysis

Commonly traders are using this kind of strategy when they're placing an order. But some situations may make this strategy not working and may touch your SL. The price on forex market.is really unpredictable

[Levie]

First of all you must know your trading strategy. If you going to trade long term or short term. For example I do trade long term and I do have 50 SL and 50 TP. But if I do short term then I guess I will just going to put 30 SL and 25 TP. In this way I can loss less. Since my earnings is less also. I'm really happy that some how I do end up making some profit in here.

[radex78]

Stop loss still become good fetuire to manage the risk in trading, not always as trader they can analyze the trend market accurate all the time, put stop loss is to manage the risk in trading, some trader might they use risk reward ratio to calculating their limit risk in every plan, like as if trader put stop loss 20 pips hence their target also 20 pips also

[Levie]

ight stop loss level apply for short term traders. they are have small profit target and it reasonable if they are choose to set tight stop loss level. while for long term traders which have high pips target, they'll have wide stop loss level. basically, calculation about stop loss level usually based on risk reward ratio.

 

[aliforex]

Stop loss also must be maximized as well as possible. And I think we should set our stop loss according with our trading plan (risk management) and also try to understand the market movement.

[myregister]

The way to maximize stop loss is by use it in every single trading you can, so if y6ou trade 5 times in  aweek use all of your trading with stop loss. Use stop loss won't make you lose more than what you set on your stop loss, unless your broker is a cheater which want to eat all of your money in your account

[Levie]

This is a question that most newbies ask and of which, a concrete answer to it is quite difficult to find. There is no specific point one would say he would set the SL and it will be the best area. Just as it is best to set it close to the support and resistance, it can also be best from our analysis, that is how we can dictate the best point. 

[myregister]

If you talk about the specific point of SL some people have their own standard then. Like myself it should be as low as 30 pips, or if not it should be in the ratio of 2:1 or 1.5:1 . That is quite specific according to me, also decide your SL in more specific way could help you alot to determine your trading next movement faster.

[Levie]

First of all you must know your trading strategy. If you going to trade long term or short term. For example I do trade long term and I do have 50 SL and 50 TP. But if I do short term then I guess I will just going to put 30 SL and 25 TP. In this way I can loss less. Since my earnings is less also. I'm really happy that some how I do end up making some profit in here.