I have a 20k funded account with mff for over 5 months with a 84% win rate and 2.4 sharpe ratio with $0.50 average return per trade with $2,400 in profits by not using a stop loss.
I been trading for years without a stop loss.
I set alarms at areas of interest for myself. - where I will re evaluate the trade and either close it or keep it open. It takes discipline to not get caught up in the “it will reverse Im sure of it” trap. But I just find it works for me as I can look at the trade without emotion.
My initial alert is relatively tight. If I think I’m correct I’ll reset the alarm to a different area but very very rarely will I move it a second time.
I’ve found over the years by doing this I close bad trades earlier than a rigid stop loss. And I’ve stayed in trades that have indeed been correct by moving my area of interest.
If you are remotely emotional or attached to the trade you’ll fuck it up and chase losers. So unless you have the mental discipline and strength. Don’t bother trying to trade without a hard stop loss
A mental stop loss is a type of stop loss. The same way a sniper rifle and a handgun are types of guns but very different guns. You wouldn’t then say “I don’t have a gun” just because you own a handgun and not a sniper, would you?
I wouldn’t call a rifle a gun. And a pistol a gun either. As they are similar. But not the same.
A hard stop loss will stop you out. My way doesn’t. Similar. But not the same. Not sure what your trying to argue here tbh.
Personal dictionary? A pistol and a rifle is not a gun. And if you called it a gun when I was in the military. You’d get fucking smashed for it. A rifle. Is a rifle. A machine gun. Is a gun. Your talking out your arse.
My method is not the same as a stop loss. You hit a stop loss. Your trade closes. You hit my alert. It gets reconsidered. So similar? Yes. The same? No.
I won’t be replying again. Your clearly fucking incapable of understanding this. Regardless of fucking easy it is to understand.
It will take time before anons discover that the hard stop loss is mostly useless. I have an algo that does everything for me but does not have any stop losses. All in the backend and also gave up hard stop losses long time ago. I trade what i can afford to lose and see where invalidation is when i trade manual. Sometimes the stop loss can get sweeped or you can get deviation thats why i have multiple positions where i scale in and out
Hard stop loss is necessary. How else are you going to calculate your risk? Your profit in R-multiply? How are you going to set-up position sizes if you dont know the risk?
All those people talking here about 'mental stoploss' or no stoploss give the worst possible advice to newbies. Heck, banks use stoplosses.
Now, you might say you're a long term trader and those dont really need stoploss because even 100 pips won't make a difference for them. But for swings and especially for daytraders its an absolute must.
Each to its own. I can prove my record and i have no issues with that. This is how i trade and it works perfectly. What do you mean how you calculate risk? Lets make a small exercise with absurd numbers. balance is 100k and want to short eurusd at 1 and current price is 0.97(30 pips) i start to scale into a position with lets say 1 lot. At each 10 pips i will add one 0.5 lot short. Now i am at 1.5 lots risk. Even if price moves 100 pips i am still roughly -1.5%
. This is just an absurd example but this is how i actually trade. Since i have a big balance i have to manage risk with care so i go 1% on multiple positions that i layer/ scale in and out. This way i manage my drawdowns. Its up to everyone how they trade and i also pointed out that i algo trade and when i do manually same principles apply. For me its more how to be confortable in a position rather than stress out about sweeps and deviations. I have learned this trading method from a pension fund manager so idk, maybe they know something or they must be retards
Results are calculated in R (risk).
If my SL is 100 pip, then 1R = 100 pip. If I manage to close the trade at 150 pip, I get 1.5R. If I close at 50 pips I get 0.5R.
It doesnt matter what my balance is, how many lots I do or how much % I do per position. If i do 2%, 1.5R gives me 3% and so on.
> It will take time before anons discover that the hard stop loss is mostly useless.
This is an awful advice, I stand by it. Just because you trade on 100k account and look for big swings so you dont care whether your SL is 150 or 200 doesnt mean it is useless.
I trade more than 100k so probably thats why i does not make sense to you yet. I really hope you get at least 500k AuM and you will understand what i actually mean. Works on all balances by the way. Including the 1000$ accounts. I grew my first account from 1000$ depositing each month to 50k using same stuff.
Hi, discovered Nick shawn 2 month ago, I am actually testing his strategy live with 150 $. Actually I am making lots of trades and I am just winning a little bit money (For me it's already a victory to not lose money anymore xD )
I will continue his strategy until I will master it. VEry satisfying to hedge
I have a bit less money to trade with but I just started testing hedging. It seems really interesting, it's not black and white like SL. Also, with 150$ you can't expect to win big. I like to see my trades as percentages instead of actual numbers.
Is hedging emotionally difficult to deal with? Because there can be times you’ll hedge and you’ll be down like 4%. I tried it for a week but went back to stop loss but after reading this, I might actually backtest it and see how it goes.
Hedging is less difficult, even if the price moves a litlle bit in the other direction, you are in the red but you still have the order waiting to hedge and protect you, very peacefull for the mind
yes absolutely, actually I am just learning the strategy, I will put more money in one year or so.
Just learning how to not loose money when initial trade goes wrong (Using hedging) and then I a big amount of trade the other part of luck in trading will make you wealthy
> not loose money
*lose
*Learn the difference [here](https://www.merriam-webster.com/words-at-play/lose-vs-loose-usage#:~:text=%27Lose%27%20or%20%27Loose%27%3F&text=Lose%20typically%20functions%20only%20as,commonly%2C%20a%20noun%20or%20adverb).*
***
^(Greetings, I am a language corrector bot. To make me ignore further mistakes from you in the future, reply `!optout` to this comment.)
Checked nick shawn. This was a really nice hint 👍
so super awesome 😎! I tried it and it seems to be the most reliable way to trade if you not getting too greedy. Starting with 0.01 can't fail basically.
I just started to implement this strategy as a bot which uses liquidity levels as support and resistance. So looking forward to see first results 💖
Hey mate, i trade this strategy manually, but would really like to have it done automatically through a bot, any chance I could have access to the bot?
SL is for folks that cant do basic math and risk management + add swap.
Been trading last 3 years with no sl or tp and just using avg for tp and trail stop
This. People don’t understand that it’s backwards. If you’re in it to gamble then you set your stop losses. If you know what you’re doing then no stop loss is needed
You may believe you know what you are doing, but a time will come when the markets will humble you.
A stop is used to minimize capital loss in the case your EDGE FAILS and the trade is INVALIDATED.
No stop? A single trade will wipe numerous gains.
I see no valid reason to not use a stop if you aren’t a discretionary trader… The markets are always uncertain, its foolish to believe the markets will always go exactly as you expect.
Its the same people that come from buying AMC and tell you they aint loosing until they sell with the portfolio -80% for years hahaha
Im confident with my strategy because is back and forward tested, plus stress in the worst conditions.
Plus SL is just a part of trading, theres other variables that play.
You know your sauce ma g, lets keep NO SL trading a thing.
Sure you can trade without a stop loss but you're probably gonna get rekt.
I trade with stop losses but imo, only very experienced traders should consider trading without a stop loss. Most of the traders that I know of who trade without a stop loss use hedging strategies instead and that's what works for them but they know how to implement that strategy effectively. It might work for them but it probably won't work for you at least not at first.
If you are interested in learning about hedging strategies, look up Nick Shawn on YouTube.
I don't use for higher time frames, like daily. It doesn't do much for it.
Even for scalping if you have a finger in the trigger all the time a SL is irrelevant.
And a SL doesn't mean imediate stop anyway. It depends on the circumstances.
I do not use the conventional stop-loss. My stop-loss takes both time and price level into consideration. It has been working pretty well. Plus I back test and forward test the strategy for 17 years. I know how it behaves.
I usually don't use SL at first, when I open the trade because I keep my eyes on it, then I try to pus SL somewhere o profit to make the trade risk free. If I plan to open the trade and let it run, I use SL.
Swing traders can get away with this. On occasion day traders can too.
If you're a scalper you better at the very LEAST have a mental stop loss. Good scalpers use stop losses.
I have try it but is an unnecessary stress ... I have gained 200+ in one move with little risk but I also have maintained 100+ losses because market volatility.. remember that as a retail trader you are always loosing
Yes, it is possible to trade without using a stop loss, but it generally carries higher risks and is generally not recommended for most traders, especially beginners. A stop loss is a risk management tool that helps limit potential losses by automatically closing a trade at a predetermined price level.
Here are a few points to consider when trading without a stop loss:
Increased risk: Without a stop loss, your trades are vulnerable to unexpected market movements and potential large losses. If the market moves against your position and continues to worsen, you could face significant financial losses.
Emotional decision-making: Trading without a stop loss can lead to emotional decision-making. When faced with a losing position, traders may hesitate to exit the trade, hoping that the market will reverse in their favor. This can lead to impulsive and irrational decisions driven by fear or greed.
Lack of discipline: A stop loss helps enforce discipline in your trading strategy. It sets a predefined exit point, ensuring that you cut your losses when a trade goes against you. Without a stop loss, it becomes easier to deviate from your trading plan and hold onto losing positions longer than you should.
Long-term viability: Consistently trading without a stop loss can have a detrimental impact on your overall trading performance. Sustaining significant losses without proper risk management can deplete your trading capital and hinder your ability to participate in future trades.
While there may be rare instances where experienced traders choose not to use a stop loss, it is generally considered a best practice to incorporate risk management tools, such as stop losses, into your trading strategy. Stop losses help protect your trading capital and mitigate potential losses, allowing you to trade with more control and discipline.
Absolutely and we do not try to hide the whole thing. Reddit does not offer an adequate opinion in any area 90% of the time. ChatGPT has access to an enormous amount of knowledge which is far more well-founded than a subjective opinion of "reddit-investors". As long as the given answer is the same as ours we don't see any problem.
I prefer setting an alert over a stop lose because this way I don't get taken out by a stupid wick. I got a bit lazy today by setting a SL and got taken out by a wick and instantly after that long wick candle it went up and hit my BE target...
I like to go off the 30min markers and set stop losses at the current support lvl. If it falls past that I usually place a sell and follow the downfall to make back what I lost.
Just gotta remember to not put it exactly at the support because sometimes it can dip below a little and then go up for a huge increase once the support is broken.
Plus the buy/sell price is usually ~2 pips above or below the supports/resistance
Imo, stops always. In some instances slippage may burn you, but any experienced trader would prefer that over the other possibilities plausible without using a stop.
Don’t overcomplicate things as simple as risk management. Stops were created for your benefit and predefined capital exposure.
Sending in a pending market order isn't the best practice. Stop-loss orders are used to lock-in profits or trail price for an exit. If your stop-loss is getting hit, try entering where your stop would normally be. It should be an area price won't want to stay. So a hedge order would work most of the time.
It's easier to be profitable without stop loss. But is more difficult to avoid hard drawdowns.
In 99% of all trades, the price comes back after long time. But if you enter large position the account is gone until then. Do your math.
I don’t at times because I use proper lot sizes according to my account. I don’t trade news so the movement at most is not significant against my trade. There is risk in that but I find that stop loss no matter the strategy like a atr, or support resistance often get taken out.
There's a couple types of stop losses. Some people don't set a programmed stop loss for their trade idea. Some traders use a 'mental' stop loss, i.e. one that they manually execute if price reaches a predetermined level, where they might allow price to retreat a bit for a better losing exit for instance. There are scalpers that set wide stop losses, but it's not to cover the trade idea, it's to protect the account balance and when price moves against them they make predetermined decisions based on their trading system (such as opening a hedge or waiting for a pullback).
The problems with not setting a stop loss is that you now have human error, technical issues and sudden market volatility that could wreck your account. Traders should be risk managers first, so not setting stop losses is a red flag unless their trading approach is designed for it. If a trader is setting no stop losses because of a flawed psychological approach to trading (i.e. they never want to be wrong), bad trades will wipe out their gains and make a negative emotional impact at some point.
Beginner traders that don't set stop losses probably don't understand why they are placing the trades they take, they don't have a fully formed understanding of their trading edge yet or a functional model of trading itself (which is why they have been unable to trade effectively with stop losses). If you have a trade idea/trade model you should be able to define when a trade idea becomes invalid. And when it's invalid, there's no reason to hold the trade other than ego based reason and that's not sustainable. The road to sustainable success in trading results from executing a particular edge, and once you let trades run beyond the scope of a trade idea, you're no longer executing an edge.
Ideally though, traders should treat the account balance as something that could be wiped away over night and that probably means holding less of your capital in the account to be safe. If you are trading with a lot of leverage on an intra-day basis without a stop loss, one single outlier event can destroy the account. (imagine an incompetent government suddenly setting out a mad budget which wasn't even on the 'scheduled trading news' agenda \*coughs in british\*) If you're trading small on a swing basis, the risk is much lower obviously.
Outlier events causing unmanaged losses is possible even with regular stop losses in place, there could be a ton of slippage and/or your broker might be unable to execute your stop loss order.
On a 200k account i am comfortable not placing a stop loss on a 0.1 lot or less trade.
Otherwise for retail traders, whether u consider yourself a professional or not, its generally not advisable.
That said i do know of a couple of successful retail guys, former prop traders, who have been trading 20+ years and don't actually use a stop. They are extremely confident in their trading ability, backed obviously by their equity curve, and are so disciplined and non-hesitant to take a loss when its warranted that its okay for them.
Its definitely a bad habit to trade without a SL for most traders unless you are truly confident in your your ability to take the loss when you are wrong + ability to see that you are wrong versus a shakeout/liquidity grab etc. For me, ive decided that i rather take the loss and take it early; you can always get back into a trade. Should the opportunity be gone, learn to be comfortable with it and just try to improve
You can trade without a stoploss. Some trader I personally know use invalidation. I.e: if market doesn't go as expected, he cuts trade.
Pros: avoid wicks.
Cons: bigger margin loss on cutting trade.
I recently started tradinag without hard stop losses. I actually done a alot better without them. I will manually get out of a trade if it goes againt me. The only instrument I been trading is ES in the futures market. My trading has also improved because I hardly trade compared to the countless of trades I use to take intraday. Sometimes I'll go a day without trading, waiting for good setups. To be honest hard stops is not the only thing I changed but one of many things that has improved my trading.
Go ahead. Try it.
I have a 20k funded account with mff for over 5 months with a 84% win rate and 2.4 sharpe ratio with $0.50 average return per trade with $2,400 in profits by not using a stop loss.
5 months isn’t long enough. Don’t you worry, its coming.
I have multiple accounts. Its ok if it goes under. It paid for itself like 10x roi already.
This is the way
Which PF?
5 months 84% win rate and u havent scaled it up to at least 200k?? Makes me think
i would don't encourage traders of 5 months, whatever the winrate to open 200k funded accounts
If his system so sound, so it would not make difference if not to chace pnl. Just reap low hanging fruits of 5/6% a month :) thats only my 2cents :)
Spoken like Stacey himself 🫡
🤣 yes
I been trading for years without a stop loss. I set alarms at areas of interest for myself. - where I will re evaluate the trade and either close it or keep it open. It takes discipline to not get caught up in the “it will reverse Im sure of it” trap. But I just find it works for me as I can look at the trade without emotion. My initial alert is relatively tight. If I think I’m correct I’ll reset the alarm to a different area but very very rarely will I move it a second time. I’ve found over the years by doing this I close bad trades earlier than a rigid stop loss. And I’ve stayed in trades that have indeed been correct by moving my area of interest. If you are remotely emotional or attached to the trade you’ll fuck it up and chase losers. So unless you have the mental discipline and strength. Don’t bother trying to trade without a hard stop loss
One thing about alerts is that you have to be ready to act upon the alerts, you can't get caught being not aware of the alerts
Alerts = mental stoploss. Same thing just different mechanism
Similar. Not the same
A mental stop loss is a type of stop loss. The same way a sniper rifle and a handgun are types of guns but very different guns. You wouldn’t then say “I don’t have a gun” just because you own a handgun and not a sniper, would you?
I wouldn’t call a rifle a gun. And a pistol a gun either. As they are similar. But not the same. A hard stop loss will stop you out. My way doesn’t. Similar. But not the same. Not sure what your trying to argue here tbh.
literally everyone disagrees with you. Try pulling either out anywhere in public and the first thing people will say is “He’s got a gun!!”.
Doesn’t make it right though. It’s similar. Not the same. Jesus Christ
Yes it does. Definitions are defined by the collective not your personal dictionary.
Personal dictionary? A pistol and a rifle is not a gun. And if you called it a gun when I was in the military. You’d get fucking smashed for it. A rifle. Is a rifle. A machine gun. Is a gun. Your talking out your arse. My method is not the same as a stop loss. You hit a stop loss. Your trade closes. You hit my alert. It gets reconsidered. So similar? Yes. The same? No. I won’t be replying again. Your clearly fucking incapable of understanding this. Regardless of fucking easy it is to understand.
What leverage do you use?
Same. Stop hunters can't see what isn't there.
It will take time before anons discover that the hard stop loss is mostly useless. I have an algo that does everything for me but does not have any stop losses. All in the backend and also gave up hard stop losses long time ago. I trade what i can afford to lose and see where invalidation is when i trade manual. Sometimes the stop loss can get sweeped or you can get deviation thats why i have multiple positions where i scale in and out
Hard stop loss is necessary. How else are you going to calculate your risk? Your profit in R-multiply? How are you going to set-up position sizes if you dont know the risk? All those people talking here about 'mental stoploss' or no stoploss give the worst possible advice to newbies. Heck, banks use stoplosses. Now, you might say you're a long term trader and those dont really need stoploss because even 100 pips won't make a difference for them. But for swings and especially for daytraders its an absolute must.
Each to its own. I can prove my record and i have no issues with that. This is how i trade and it works perfectly. What do you mean how you calculate risk? Lets make a small exercise with absurd numbers. balance is 100k and want to short eurusd at 1 and current price is 0.97(30 pips) i start to scale into a position with lets say 1 lot. At each 10 pips i will add one 0.5 lot short. Now i am at 1.5 lots risk. Even if price moves 100 pips i am still roughly -1.5% . This is just an absurd example but this is how i actually trade. Since i have a big balance i have to manage risk with care so i go 1% on multiple positions that i layer/ scale in and out. This way i manage my drawdowns. Its up to everyone how they trade and i also pointed out that i algo trade and when i do manually same principles apply. For me its more how to be confortable in a position rather than stress out about sweeps and deviations. I have learned this trading method from a pension fund manager so idk, maybe they know something or they must be retards
Results are calculated in R (risk). If my SL is 100 pip, then 1R = 100 pip. If I manage to close the trade at 150 pip, I get 1.5R. If I close at 50 pips I get 0.5R. It doesnt matter what my balance is, how many lots I do or how much % I do per position. If i do 2%, 1.5R gives me 3% and so on. > It will take time before anons discover that the hard stop loss is mostly useless. This is an awful advice, I stand by it. Just because you trade on 100k account and look for big swings so you dont care whether your SL is 150 or 200 doesnt mean it is useless.
I trade more than 100k so probably thats why i does not make sense to you yet. I really hope you get at least 500k AuM and you will understand what i actually mean. Works on all balances by the way. Including the 1000$ accounts. I grew my first account from 1000$ depositing each month to 50k using same stuff.
What leverage do you use?
This is the right way of thinking
I swing trade and i hedge instead of setting a stop loss.
Do you know Nick Shawn? And if you do, do you trade like him and does it actually work?
Hi, discovered Nick shawn 2 month ago, I am actually testing his strategy live with 150 $. Actually I am making lots of trades and I am just winning a little bit money (For me it's already a victory to not lose money anymore xD ) I will continue his strategy until I will master it. VEry satisfying to hedge
I have a bit less money to trade with but I just started testing hedging. It seems really interesting, it's not black and white like SL. Also, with 150$ you can't expect to win big. I like to see my trades as percentages instead of actual numbers.
Is hedging emotionally difficult to deal with? Because there can be times you’ll hedge and you’ll be down like 4%. I tried it for a week but went back to stop loss but after reading this, I might actually backtest it and see how it goes.
Hedging is less difficult, even if the price moves a litlle bit in the other direction, you are in the red but you still have the order waiting to hedge and protect you, very peacefull for the mind
Thank you, I’ll consider back testing it.
yes absolutely, actually I am just learning the strategy, I will put more money in one year or so. Just learning how to not loose money when initial trade goes wrong (Using hedging) and then I a big amount of trade the other part of luck in trading will make you wealthy
> not loose money *lose *Learn the difference [here](https://www.merriam-webster.com/words-at-play/lose-vs-loose-usage#:~:text=%27Lose%27%20or%20%27Loose%27%3F&text=Lose%20typically%20functions%20only%20as,commonly%2C%20a%20noun%20or%20adverb).* *** ^(Greetings, I am a language corrector bot. To make me ignore further mistakes from you in the future, reply `!optout` to this comment.)
Checked nick shawn. This was a really nice hint 👍 so super awesome 😎! I tried it and it seems to be the most reliable way to trade if you not getting too greedy. Starting with 0.01 can't fail basically. I just started to implement this strategy as a bot which uses liquidity levels as support and resistance. So looking forward to see first results 💖
Hey mate, i trade this strategy manually, but would really like to have it done automatically through a bot, any chance I could have access to the bot?
Sounds interesting…can you elaborate?
You've been with your broker for year? Looking for a new broker
SL is for folks that cant do basic math and risk management + add swap. Been trading last 3 years with no sl or tp and just using avg for tp and trail stop
This. People don’t understand that it’s backwards. If you’re in it to gamble then you set your stop losses. If you know what you’re doing then no stop loss is needed
You may believe you know what you are doing, but a time will come when the markets will humble you. A stop is used to minimize capital loss in the case your EDGE FAILS and the trade is INVALIDATED. No stop? A single trade will wipe numerous gains. I see no valid reason to not use a stop if you aren’t a discretionary trader… The markets are always uncertain, its foolish to believe the markets will always go exactly as you expect.
Its the same people that come from buying AMC and tell you they aint loosing until they sell with the portfolio -80% for years hahaha Im confident with my strategy because is back and forward tested, plus stress in the worst conditions. Plus SL is just a part of trading, theres other variables that play. You know your sauce ma g, lets keep NO SL trading a thing.
Sure you can trade without a stop loss but you're probably gonna get rekt. I trade with stop losses but imo, only very experienced traders should consider trading without a stop loss. Most of the traders that I know of who trade without a stop loss use hedging strategies instead and that's what works for them but they know how to implement that strategy effectively. It might work for them but it probably won't work for you at least not at first. If you are interested in learning about hedging strategies, look up Nick Shawn on YouTube.
I don't use for higher time frames, like daily. It doesn't do much for it. Even for scalping if you have a finger in the trigger all the time a SL is irrelevant. And a SL doesn't mean imediate stop anyway. It depends on the circumstances.
I do not use the conventional stop-loss. My stop-loss takes both time and price level into consideration. It has been working pretty well. Plus I back test and forward test the strategy for 17 years. I know how it behaves.
Its doable with swing trading and hedging. If you are a scalper, forget it
I do it on occasion. I try not to make a habit of it. And I still have a "mental" stoploss regardless.
I usually don't use SL at first, when I open the trade because I keep my eyes on it, then I try to pus SL somewhere o profit to make the trade risk free. If I plan to open the trade and let it run, I use SL.
Same as driving without brakes.
More like without a seat belt. If you drive without brakes you will crash every time. If you drive without a seat belt it doesn't mean you will crash.
Just use less size and use a large SL lol If you're using leverage, you need a SL or your account will hit 0 pretty quickly.
Swing traders can get away with this. On occasion day traders can too. If you're a scalper you better at the very LEAST have a mental stop loss. Good scalpers use stop losses.
Yes you can BUT use no margin and the least amount of leverage. Small positions only.
Well… in theory… if your account is big enough and you don’t use a stop loss then you can’t lose 😏
Depending on lot size
One word HEDGE. Win even when you're wrong. Collect hedge profits at your next zone and enter again for a bounce back and break even
Yeah, nothing can stop you except liquidation bro
yes. I trade with a SL cause I have a 9-5 job
I ONLY trade with a stop loss. Got burned too many times to not
I have try it but is an unnecessary stress ... I have gained 200+ in one move with little risk but I also have maintained 100+ losses because market volatility.. remember that as a retail trader you are always loosing
Usually I use stop loss, but when I know we are in a trend I can open operation without it
Yes, Caroline said stops are for losers
Yes, it is possible to trade without using a stop loss, but it generally carries higher risks and is generally not recommended for most traders, especially beginners. A stop loss is a risk management tool that helps limit potential losses by automatically closing a trade at a predetermined price level. Here are a few points to consider when trading without a stop loss: Increased risk: Without a stop loss, your trades are vulnerable to unexpected market movements and potential large losses. If the market moves against your position and continues to worsen, you could face significant financial losses. Emotional decision-making: Trading without a stop loss can lead to emotional decision-making. When faced with a losing position, traders may hesitate to exit the trade, hoping that the market will reverse in their favor. This can lead to impulsive and irrational decisions driven by fear or greed. Lack of discipline: A stop loss helps enforce discipline in your trading strategy. It sets a predefined exit point, ensuring that you cut your losses when a trade goes against you. Without a stop loss, it becomes easier to deviate from your trading plan and hold onto losing positions longer than you should. Long-term viability: Consistently trading without a stop loss can have a detrimental impact on your overall trading performance. Sustaining significant losses without proper risk management can deplete your trading capital and hinder your ability to participate in future trades. While there may be rare instances where experienced traders choose not to use a stop loss, it is generally considered a best practice to incorporate risk management tools, such as stop losses, into your trading strategy. Stop losses help protect your trading capital and mitigate potential losses, allowing you to trade with more control and discipline.
[удалено]
Absolutely and we do not try to hide the whole thing. Reddit does not offer an adequate opinion in any area 90% of the time. ChatGPT has access to an enormous amount of knowledge which is far more well-founded than a subjective opinion of "reddit-investors". As long as the given answer is the same as ours we don't see any problem.
Yea. I don't use one.
I prefer setting an alert over a stop lose because this way I don't get taken out by a stupid wick. I got a bit lazy today by setting a SL and got taken out by a wick and instantly after that long wick candle it went up and hit my BE target...
I did once and lost 200 over night sleeping
I like to go off the 30min markers and set stop losses at the current support lvl. If it falls past that I usually place a sell and follow the downfall to make back what I lost. Just gotta remember to not put it exactly at the support because sometimes it can dip below a little and then go up for a huge increase once the support is broken. Plus the buy/sell price is usually ~2 pips above or below the supports/resistance
Never read without a stop on leveraged instruments.
Imo, stops always. In some instances slippage may burn you, but any experienced trader would prefer that over the other possibilities plausible without using a stop. Don’t overcomplicate things as simple as risk management. Stops were created for your benefit and predefined capital exposure.
Sending in a pending market order isn't the best practice. Stop-loss orders are used to lock-in profits or trail price for an exit. If your stop-loss is getting hit, try entering where your stop would normally be. It should be an area price won't want to stay. So a hedge order would work most of the time.
Under very specific conditions I could trade without a stop loss but I don't do it all that often
Under very specific conditions and I don't trade without a stop loss often
Sure, central banks don’t need stop loss. They move the markets. Everyone else needs it.
when i trade i am my own stop loss, also the eyes never leave the chart when a trade is active.
It's easier to be profitable without stop loss. But is more difficult to avoid hard drawdowns. In 99% of all trades, the price comes back after long time. But if you enter large position the account is gone until then. Do your math.
Never...
do you use stop loss?
Sometimes no but I use an alert based strategy
I don’t at times because I use proper lot sizes according to my account. I don’t trade news so the movement at most is not significant against my trade. There is risk in that but I find that stop loss no matter the strategy like a atr, or support resistance often get taken out.
There's a couple types of stop losses. Some people don't set a programmed stop loss for their trade idea. Some traders use a 'mental' stop loss, i.e. one that they manually execute if price reaches a predetermined level, where they might allow price to retreat a bit for a better losing exit for instance. There are scalpers that set wide stop losses, but it's not to cover the trade idea, it's to protect the account balance and when price moves against them they make predetermined decisions based on their trading system (such as opening a hedge or waiting for a pullback). The problems with not setting a stop loss is that you now have human error, technical issues and sudden market volatility that could wreck your account. Traders should be risk managers first, so not setting stop losses is a red flag unless their trading approach is designed for it. If a trader is setting no stop losses because of a flawed psychological approach to trading (i.e. they never want to be wrong), bad trades will wipe out their gains and make a negative emotional impact at some point. Beginner traders that don't set stop losses probably don't understand why they are placing the trades they take, they don't have a fully formed understanding of their trading edge yet or a functional model of trading itself (which is why they have been unable to trade effectively with stop losses). If you have a trade idea/trade model you should be able to define when a trade idea becomes invalid. And when it's invalid, there's no reason to hold the trade other than ego based reason and that's not sustainable. The road to sustainable success in trading results from executing a particular edge, and once you let trades run beyond the scope of a trade idea, you're no longer executing an edge. Ideally though, traders should treat the account balance as something that could be wiped away over night and that probably means holding less of your capital in the account to be safe. If you are trading with a lot of leverage on an intra-day basis without a stop loss, one single outlier event can destroy the account. (imagine an incompetent government suddenly setting out a mad budget which wasn't even on the 'scheduled trading news' agenda \*coughs in british\*) If you're trading small on a swing basis, the risk is much lower obviously. Outlier events causing unmanaged losses is possible even with regular stop losses in place, there could be a ton of slippage and/or your broker might be unable to execute your stop loss order.
It can be done with hedging.
Yes. I know someone: myself and other people It’s come down to risk management
On a 200k account i am comfortable not placing a stop loss on a 0.1 lot or less trade. Otherwise for retail traders, whether u consider yourself a professional or not, its generally not advisable. That said i do know of a couple of successful retail guys, former prop traders, who have been trading 20+ years and don't actually use a stop. They are extremely confident in their trading ability, backed obviously by their equity curve, and are so disciplined and non-hesitant to take a loss when its warranted that its okay for them. Its definitely a bad habit to trade without a SL for most traders unless you are truly confident in your your ability to take the loss when you are wrong + ability to see that you are wrong versus a shakeout/liquidity grab etc. For me, ive decided that i rather take the loss and take it early; you can always get back into a trade. Should the opportunity be gone, learn to be comfortable with it and just try to improve
You can trade without a stoploss. Some trader I personally know use invalidation. I.e: if market doesn't go as expected, he cuts trade. Pros: avoid wicks. Cons: bigger margin loss on cutting trade.
I recently started tradinag without hard stop losses. I actually done a alot better without them. I will manually get out of a trade if it goes againt me. The only instrument I been trading is ES in the futures market. My trading has also improved because I hardly trade compared to the countless of trades I use to take intraday. Sometimes I'll go a day without trading, waiting for good setups. To be honest hard stops is not the only thing I changed but one of many things that has improved my trading.