Determining a stop loss

[Trex123]

how do you determine stop loss of your trade?

 

[junhan]

Re: stop loss

how do you determine stop loss of your trade?

5-8% lower than your buy value depending on how strict you are

 

[tech/a]

Re: stop loss

Initial stop or trailing stop?

Generally it would be volatility based.
You'd have your answer if you had a
Well tested trading method.

So your trading in a discretionary manner.

 

[Trembling Hand]

Re: stop loss

5-8% lower than your buy value depending on how strict you are

A 5 to 8 percentage move on Forex for your stop!!!! What is your target? The collapse of capitalism by Wednesday next week? :

 

[tech/a]

Re: stop loss

A 5 to 8 percentage move on Forex for your stop!!!! What is your target? The collapse of capitalism by Wednesday next week? :

That just cracked me up------

 

[$20shoes]

Re: stop loss

Hey, TH is back in the swill. Good to see you posting again.

 

[Trex123]

Re: stop loss

That just cracked me up------

what you mean?

 

[tech/a]

Re: stop loss

what you mean?

A big move in forex for - T/h is 3 pips.
An 8% move in the AUD would mean a drop of 8c or 800 pips.
The comment was an excellent form of litoties.

 

[OGRooney]

I try to maintain a 2:1 Profit to risk ratio at all times... Having said that, I will take on slightly more risk in order to respect a significant point of resistance or support, because in reality, by respecting that Resistance/Support level you are actually reducing your risk of getting stopped out and taking a loss. Also note that lately I have been hedging and trading in the daily trend direction on both positions ie Buying AUDUSD and Selling EURUSD, and hence have made a discretionary decision to not use stops or take profit orders, I am closely monitoring my accounts.

There's nothing worse than being stopped out on an order when it's just a retrace or that last extra dip before she arcs up again.

 

[Boggo]

There's nothing worse than being stopped out on an order when it's just a retrace or that last extra dip before she arcs up again.

Yes there is !!

 

[OGRooney]

Yes there is !!

What losing your entire account balance? You get incorrectly stopped out enough times you'll lose your entire account balance too. Set your stops with enough headroom to take in market volatility.

 

[Boggo]

Set your stops with enough headroom to take in market volatility.

Show a recent chart example of what you mean.

With a robust system you will get stopped out more than you win, its how you win that counts.

(click to expand)

 

[OGRooney]

Show a recent chart example of what you mean.

With a robust system you will get stopped out more than you win, its how you win that counts.

Can't be bothered showing a chart - my point is simple. Anyone who is currently short AUDUSD and had their stop set to a recent resistance level has just been stopped out, even though it is not obvious yet whether the pair is actually going to breakout. Could work out, could have been unnecessary, there's still much more scope for bearish action.

 

[OGRooney]

EURUSD the other night broke resistance at 1.230ish, but once again no breakout.

 

[Boggo]

Anyone who is currently short AUDUSD

Not sure why anyone would be short yet on that, my 15min and 30min charts are both still long so a trailing stop is all that I would have (if I actually held it)

(click to expand)

 

[OGRooney]

Sorry I'm getting confused are you actually suggesting setting stops right on resistance/support levels? Or are you just arguing with me to be a douche?

In both examples I gave, a lenient stop would have prevented an unnecessary loss, I really don't care to argue my strategy much further with you, I'm really not the only person who uses it, I've seen stops recommended on dailyfx some 200 pips higher than the current market price. I personally would never use such a lenient stop I don't have the equity to throw around.

 

[CanOz]

Sorry I'm getting confused are you actually suggesting setting stops right on resistance/support levels? Or are you just arguing with me to be a douche?

In both examples I gave, a lenient stop would have prevented an unnecessary loss, I really don't care to argue my strategy much further with you, I'm really not the only person who uses it, I've seen stops recommended on dailyfx some 200 pips higher than the current market price. I personally would never use such a lenient stop I don't have the equity to throw around.

I don't we need to resort to personal attacks do we??

CanOz:frown:

 

[prawn_86]

OGRooney, please refrain from insulting other members. Any further insults will incur an infraction

Also, if you are going to discuss topics like this then a chart is the best way of visually representing this so we can see what you are talking about. Alternatively please use exact figures and examples so members can see what you mean rather than simply saying "at the resistance level"

 

[Joules MM1]

.....you are going to discuss topics like this....a chart is the best way of visually representing this so we can see what you are talking about. Alternatively please use exact figures and examples so members can see what you mean....

good to add that to a "Basic Protocols and Guidelines" open letter to all new members......could even set a new standard in chat room conduct......

:dimbulb:

 

[prawn_86]

good to add that to a "Basic Protocols and Guidelines" open letter to all new members......could even set a new standard in chat room conduct......

:dimbulb:

I beleive it is in the posting guidelines. If you are going to discuss chart related action, then please post a chart so we can see what you are talking about (or something along those lines)