Is it good to use stop loss?

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Do you think without setting S/L will result to margin call? The broker will close our trading account immediately? Is there any way to recover our trading account?

 

Is it good to use stop loss?

Friends,

good day.

I am quite new in forex but i am studing a lot. I have been Able to make around 7-10% daily just taking 3 hours in front of the computer.

I've read that most of people do not make money in forex which i find very confused, as either they are lying, Im am in a luck fase or i am too good at it.

I am on demo account, not using sl or tk, and aiming to scalp around 15-20 dollars per trade. If it starts go negative i dont close the position. Most of the times, soon or later it reverses and become positive. There was even a day that i was $-800,00 and the following day it was +$600,00. Of course, some times it took all the accounts money (due to news impact and not demand and supply impact) but most of the times it turned positive. So my question is: do people lose money because the put their sl too soon or close a position with few negative pips thefore not giving chance for the price to turn?

 

Making 7 to 10% a day just means one thing : too much risk. Your account(s) will not last long - does not matter if you use stop loss or not

 

"demo" now there's the magic word again.. Try it on real account then see how you go..

 

Don't you just adore the "big door entries" that some are adopting?

philt:
"demo" now there's the magic word again.. Try it on real account then see how you go..
 

Thanks for the advices...but concerning the "demo" word, does that relates only to the psychological side, or it goes also to differences in the trading circunstances?

But again, is it normal once a price changes due to demand and supply influence and not to news, that sooner or later it has great chances to turn a negative trade into a positive?

Also, i am too new, but dont quite get what techmac said about me being too risk...i opened a demo account of 3.000 and making an avarage of 17-25 dollars per trade....20 of those throughout the day makes the 10%...how is that been too risk?

Sorry about my questions but i am about to go live an in Brazil forex is not regulated therefore not allowed to operate here, so you guys are my only source of info...

Thanx again!!

 

Marcio

From the numbers you provide I assume you are trading 1 full 1:100 leverage lot. On a 3000$ account that order sizes are invoking a risk (without using stop loss) way, way to big for a normal trading. As philt told you : try that on a live account and you will be able to see what happens with that kind of scalping you are doing right now on a demo

 

https://www.fxcopy.com/profile/DonLazlo/A/trades

Take at look at his accounts, he has blown over 100,000 €. And hes not the only one. In fact take a look at most traders on there and you'll see the one thing all the losers have in common is no stop and poor to non exsistent money mangement. So don't think you'll be any different, because you won't.

I'm not going to explain why you need a stop, you will have to find out and learn the hard way like most others..

 

93 followers Incredible

philt:
https://www.fxcopy.com/profile/DonLazlo/A/trades

Take at look at his accounts, he has blown over 100,000 €. And hes not the only one. In fact take a look at most traders on there and you'll see the one thing all the losers have in common is no stop and poor to non exsistent money mangement. So don't think you'll be any different, because you won't.

I'm not going to explain why you need a stop, you will have to find out and learn the hard way like most others..
 

But there is a "trading plan"

See the GBPJPY orders opened 3 months ago and he keeps those opened regardless of the accumulated loss they generated so far (judging from the order sizes it is some kind of a martingale system). So the trading plan is : "It will come my way sooner or later".

 

im no expert on stop losses - but know you need one, always (from experience)

i think we've all done the demos and at the start just disregarded stop losses for the time being just to get just try to get the trading right

after a bit of time realise, sometimes you just cant always get it right, its not a myth that systems or our methods cant be 100% correct, its reality

price does nt always come back - sure it often does because of the daily cycles

but get caught short in strong uptrends or long in bigger wkly or monthly selloffs and your stuffed,

and price also does nt always come back regardless of how much you average down and then you just compound the loss into something horrendous,

that i was quite good at,

but it does nt happen all the time, they happen in strong trending markets once every few months

get the methods right and stops need to be much less and then just take the hit and often its nice to be stopped out, especially as you know what could of happen (again)

besides i thought a stop was automatically calculated if you enter with no stop yourself

its leverage that kills accounts as the broker will stop you out when they choose and not always where your stop is anyway

no stop and they will close you out early, likely just for fun and because they can

traders MUST use a sensible stop and find out why leverage kills

and normal stops cant be guaranteed either, the broker can and will still stop you out if they can get away with it

best to use a guaranteed stop and even then is at the brokers discretion

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