Stop loss ka importance?

Some experienced forex traders prefer to use technical stop loss levels in order to protect their accounts. These stop loss levels favour swing traders who hold longer term positions and require that the trade has a reasonable amount of space to ‘breathe’.

Even though technical stop losses may offer more flexibility to forex traders, they are generally only employed where the potential profit is anticipated to far exceed the loss that these stop losses represent.

By moving the stop loss to the entry price, a trade becomes almost entirely risk-free and allows the trader to focus entirely on the profit level that they require.

Employing a take profit order once the stop loss is at break even will assist with the difficulties of knowing when to close the trade.

Stop loss should be placed in a position that will be triggered only when the direction you have chosen is absolutely wrong.

When you take a short position, you have to add the spread to the value of the point that you consider as the stop loss because when you take a short position (you sell) you have to buy to close the position and when you buy you have to pay the spread to the broker.

When you see that the price moves to your favorite direction and you are making profit, you should cancel your primary stop loss and set anther one, higher than the primary stop loss.

The most logical and safest place to put your stop loss on a pin bar setup is just beyond the high or low of the pin bar tail.

A trade order to sell a currency when the price reaches or falls below the specified price. This is used to limit loss, usually when the price can not be actively monitored by the trader.

We use stop losses to keep our bad trades from turning into trainwrecks or albatrosses or whatever term you want to use to describe them.

Stop loss isn't often a favorite tool for many Forex traders as it requires taking necessary losses, calculate risks and foresee price reversals.

A stop-loss order is a market order type where the currency that you bought will be sold if it falls below a certain value thus keeping you from incurring more losses. This is typical for a long position (when you buy the base currency in anticipation that it'll appreciate) where it will be automatically sold when the market moves against your position.

When set-up, a stop-loss order will remain effective until the long currency is sold or if you cancel it. The value of the stop-loss order is a forex novice's best friend. More often than not, the temptation to keep long with a currency in hopes that it will appreciate soon has been one of the many mistakes that novice traders make.

It's also important for every beginner to understand that though the stop-loss order protects their capital while they execute trades, it's more important not to rush into the transactions. Learn to manage your capital as well, by trading one currency pair at a time while you're still getting the hang of things.

Many traders don’t like using "Stop Loss." They think that when the Stop Loss is hit, price will bounce back according to their Target Profit. This is not recommended. Stop Loss is used to prevent you from getting a bigger loss.