Importance of Stop Loss in Trading

Assalam-o-alaikum,

Today, I am going to tell you the importance of using stop loss in your trading. Many people think that using stop loss is useless, most of them have the very idea,'I am on my chart till then my trade is opened so why should I use stop loss?

Remember!


A successful trader always knows the proper and perfect use of stop loss

Well, to all people and others, using stop loss perfectly is one of the greatest weapons in your trading tools.
If you know how to manage your stop loss, you can keep yourself away from big and unexpected losses.

For instance, if you are opening a trade without any stop loss, and that trade is going on in your favor, Hurrah's! you are happy but after a few seconds/minutes the same trade turns against and it is a great spike in the market, what would you do?

You wouldn't have used any stop loss and in the end, your account would blow up!

This is the worst condition, you can meet while doing trading without using any stop loss.

Why don't we use stop loss?

Well, many of us don't like to accept our defeat, and also not to think of going adverse, but as a trader we must have a loot at another side of a picture. A successful trader always admits their mistakes and he/she tries to minimize its losses by putting stop losses on the correct position.

Another important thing is to say that, we had better keep one thing in our mind, if we don't use stop loss and the position turn against us in that case the major portion of our equity will blow up. The best option is, use stop loss of any position you think it best.

Try to keep your stops loss at at least 2-5 % of your equity (exceptions are there, due to the volume of your equity)

So, it's my humble request to all of new traders, (including me) use stop loss properly.

From the desk of miles . . .

yea stop loss buht importance hai for3x trading mai.. kun k agar apki trad worng ho or ap ne stop loss nhi lagaya ho to apka sara balance ziaya ho sakta hai is leye ap jab bhi trad karo stop loss hamesha use karo :)

It is good that you are thinking about using stop loss, because all new traders who don't know about market reversal or market trend should always use stop loss rather than leaving trades open without SL.

There will be never be a trader that will ever be successful with out the use of the stop loss many traders have tried it even trying to to keep record of 100% wining ratio through this large draw down is what they always faces.

Main Samajhtaa hon K stop loss Ka option he newbies K liye rakhaa gya hai hammain forex trading main in Karnay k liye ye eek Attractive point hai... hammain Chahiyee k hum Stop loss Kaa bharpoor faida uthayen na sirf live Trading main balkay main Samjhtaa hon K demo trading main Aap Stop loss Ko mukhtalif time frames par adjust Kar k achay Results gain kar skatay hain.

my friend specially for the newbies the stop loss is the important thing if they will not use the stop loss then the success is not the possible in the forex ,if i say that the stop loss is the essential for the newbies then it will not the wrong thing

stop loss i think aik nihayat hi aham or important option ha or hur experienced trader isko use karta ha q k app ki prediction kabhi bhi ghalat hosakti ha or ager app na bari trade open ki ho or stop loss set na kia ho to app ka saray ka sara balance loss hony ka khatra rehta ha.

Forex is a financial business. so really forex trade business has huge loss and profit. loss is a part in the forex trade business. loss is very easy in forex market. so all the traders must need to use stop loss.

Stop loss is most important in trading because it is necessary part money managment without stop loss you cannot sustain in the forex market because offen market movement against news in these circumstances stop loss will help you to sustain in the market.

It is one way to pactice proper money management but when used incorrectly, it cold lead to more lossses than wins. you do not want do so. when you execute a trade, always remember to account for the pair's volatility and the fact that it cou8ld dilly dally around yor entry point for a bit before continuing in a particular direction. For instance, let's say you wnt long GBP/JPY at 145.00 with a stop at 144.90. Even if you are right in predicting taht the price would bounce from that area it is possiblity that the price will still dip 10-15 pips lower than your entry price beofre poping hier probably until 147. so do not forget give your trade enough reathing room and take volatility into account.

Hi brother I am new in forex trading. I read your topic and amazed. So nice post it is! it will help me in forex trading. Lots of thanks for the post.

ye boht achi bat batai hai stop loss lagane ki kyu k forex me loss kafi zyada bhi ho jata hai is liye stop loss ka istamal
hona boht zaroori hai kyu k is k zarye hum apne acount ki raqam ko secure kr sakte hai or kafi loss se apne ap ko
mehfooz bhi kr sakte hai.

thanks bro nice info

Stop loss ensures that your loss is not more that what you can actually afford. It sets a fixed level that allows your to play freely in the market within that level. When you have put in the stop loss thing, you have ensured that your loss is now limited so it gives you peace of mind.

kisi bhi trader kay liey stop loss ka use boohat important hoota hai.agar aap stop loss use karo gay to aap ka account save rhy ga or aap is tarah zyaada time survive kar sako gay.