Forex Tips : Stop Loss to Use or Not to Use

Stop Loss is quite a complicated case. However, without using a stop loss, you may be losing a lot of funds worth weeks, months, years of hard work, just only in one very unsuccessful trade.
 


Try this:
Every trade carries 2 - 3% of your capital.

If your capital is USD1000.

That 2% of USD1000 = USD20 per trade.

 

If an average pips of daily trading range is 150pips, you could use 2/3 or 1/2 of it. For me, I prefer 100pips.

 

That makes USD20/100pips = USD0.20 per pips.


 

 

 

 

It is often that, we all would think that USD0.20 per pip is too small, how about USD1.00 per pips, 20pips stop loss. Actually when the currency pair is active, a question of 20pips is easily reached within minutes. Who is faster? the market or you? 

 If everyday wins you 2%, 22 days = 44% monthly, getting you USD440, provided your trading system works. 

 Doesn't it look better with USD0.20per pip? If you wondering USD1 per pip would make more, it should allow you to win USD440 within 11 days, right? or 5 times in a month = USD2200.00?

 Well, please ready with your own calculations. 
 The real answer is how you want it to be, and depends on the skill you own.

 By the way, setting a stop loss would avoid the following undesired event:


 a) forex server problem
 b) Desktop PC problem
 c) Laptop problem
 d) Broadband problem

 Do we blame everything except ourselves?