How to set SL for beginner?

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One problem that I have had is placing my stop loss. When I started just like everybody else in a demo account in Profiforex, I was not scared to put my stop loss a 100 pips away. When trading the Demo account very rarely would I get stopped out and usually would turn a profit based on my strategies. Once I opened a real money account in Profiforex, I started to place my stop loss a lot closer to avoid the big loss. This proved to be ineffective as most of the trades I was making were great but I was just not giving it enough room. As anyone else experienced this problem and how did you figure out where to put your stop loss so you don't screw yourself over?
 

Demo trade without a stop. Once you have results from a few hundred trades work out maximum adverse excursion statistics for the profitable trades. That gives you a reasonable starting point. If the stop is too big, reduce position size. You'll soon discover if you have a genuine edge.

 

You will find that most successful trading systems use a large stop loss, you need to give the market plenty of "wiggle" room to hit your TP

 

Well, you could try trial and error and keep a log of your profit/loss depending on how large or small your stop loss is.

 

The best what we have from the nature is our feelings, if you feel that it is not your trend close your position, better to stop your losses earlier then after some time when it will be 'very big'. for me better to open new position and close the possition it small '-' then wait for a long time for good time of the order, it takes a lot of time and nervous!

 

You need to apply correct money management to keep your account alive.

SL "size":

Depending on the time frame you trade on, you have to adjust your SL accordingly. It is clear that a day trader is using a different SL than a swing trader.

Risk per Trade:

But they both need to apply the same money management, which is ideal to be 2% equity risk per trade.

Lot Size:

This affects the lot size of course. The deeper the SL, the smaller the lot size

Percentage Ratio:

Depending on the system, it is necessary to keep a "healthy" win / lose ratio.

If your trading system keeps the rule TP / SL = 2:1, then a winning ratio above 40% is acceptable

Hope that helps

 

Setup your stop losses near important support and resistance levels.

 

Thanks for all your helps and advices! It seems i have many things should to study.

 

I prefer to use ATR in my S/L calculation. Thus, the vola of the last n-time points can be considered.

 

do you know teamview.exe version 6.0 . it is able remote computer and i can learn knowledge from everybody. hi. what do you useful for a beginner in forex market?

regards for you!

 
cosmodarwin:
One problem that I have had is placing my stop loss. When I started just like everybody else in a demo account in Profiforex, I was not scared to put my stop loss a 100 pips away. When trading the Demo account very rarely would I get stopped out and usually would turn a profit based on my strategies.
Once I opened a real money account in Profiforex, I started to place my stop loss a lot closer to avoid the big loss. This proved to be ineffective as most of the trades I was making were great but I was just not giving it enough room.
As anyone else experienced this problem and how did you figure out where to put your stop loss so you don't screw yourself over?

look, your question has only one answer - you have got to have the courage to risk your money because that is that forex is about.

but - you can't have the courage to risk your money if you don't have some extra 20,000$ to trade with.

in order to profit in forex - you've got to have money to make money.

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