Should I place a Stop Loss on every Open Position when Trading?

place a Loss or SL
Is Stop Loss or SL important?

Hello everyone, again I made a post that might interest to discuss in forex trading. :)

Well, on this occasion I will discuss SL or the term Stop Loss which is usually frequently debated, is this SL obligatory to installed on every OP or Open Position that we do?

Well, ​​this post is because I have experienced and felt that SL is sometimes harmful, sometimes SL is also beneficial.

If by professional traders, we often hear that SL is obligatory, but is that true?

I opened several positions that benefited because of SL, whereat Open Position, then I left and did not see the monitor/chart continuously, so you could say that SL was profitable, right?

I also had an incident when a sudden price fluctuated because of News (fundamental) and hit by SL and finally closed.

Well, this happened because there was a Stop Loss, my position was closed automatically according to what I risked, so that my account it avoided from the name Margin Call or MC.

While I have also regretted it because of Stop Loss.

The story, I often happen where open positions affected by SL, but after that suddenly the price reverses direction and even goes to the TP (take profit) I have planned that.

And finally, because of that incident, I really want to slam the Laptop / Smartphone used for trading ... zzz

Well, from the brief stories above it can conclude if the SL has its own advantages and disadvantages. However, the purpose of the SL order itself is to benefit traders.

So basically SL is beneficial, although sometimes SL can be detrimental.

So, a question arises: Should I place a Stop Loss on every Open Position when Trading?
The answer is simple, namely: Relative ... hahaha.

Yes, I can say relative because I am still a beginner and not yet professional to trade. Because of a lot of things I experienced, which sometimes feel disadvantaged by Stop Loss and also sometimes benefited by Stop Loss.

So according to me personally, placing SL is not mandatory. The main purpose of the Stop Loss order is to limit our losses, which means how much we will give up funds that will be lost.

Place a Stop Loss is relative and in my opinion, we must place an SL when conditions:

  • Open an open position when a large lot with less healthy equity or capital is not so big (this can threaten large losses),
  • When we are busy and can't see the chart continuously (Well, this one is obligatory because if we don't place an SL, it will be dangerous).
  • When the psychology and mental trades disturbed (This means when the trader is afraid to do a Cut Loss, so it's better to place an SL).

Now, this is some conditions where we do not need SL namely:

  • When the OP with a small lot and has a large capital/equity is healthy (if this one does not matter placed an SL because our capital resilience is strong besides that if you use a small lot, then the loss is small).
  • When we look at charts continuously (if we look at charts continuously we not required to attach SL, sometimes if pairs of SL are too bad right if we see with our own eyes exposed to SL and Loss, hahaha).
  • When the psychology of traders is good (Now, if this includes mentally strong traders because when the trader is confident, we do not require it to place an SL because when the trader knows the analysis is wrong the trader dares to take Cut Loss).

Btw, the CL is good because it can experience less loss than when using SL, but to do CL feels very heavy. (honestly until now I am also very heavy to do CL, although the analysis is wrong sometimes I just surrender the price will be subject to SL or even SL shifted until the MC). :(

Now, that's some condition whether we have to install SL. Btw, maybe this blog is the only site that does not require placing an SL because I know that most articles on the sites of professional traders must place SL because it can limit losses.

Don't imitate me guys hahaha because I'm also a beginner so I still need to learn more. But it's like that. Maybe this blog differs from the others because this is just my opinion...haha.

Back again to Stop Loss, SL is actually profitable if we know to install it and according to some traders who already have a long experience, when installing SL, install it in the nearest Support or Resistant.

Seeing the prices of S and R, it is possible that traders must have margin resilience and have good money management.

Therefore, many recommend that trading management considered and also make sure that there is sufficient capital.

Okay, that's all the chatter today. Although the story of this post is a bit 'misleading', it's also good enough to increase the number of posts on this blog. Peace ...

0 Response to "Should I place a Stop Loss on every Open Position when Trading?"

Post a Comment

Iklan Atas Artikel

Iklan Tengah Artikel 1

Iklan Tengah Artikel 2

Iklan Bawah Artikel