How to set SL for beginner? - page 2
You are missing trading opportunities:
- Free trading apps
- Over 8,000 signals for copying
- Economic news for exploring financial markets
Registration
Log in
You agree to website policy and terms of use
If you do not have an account, please register
Hi Tomfrank,
Thanks for your reply. But how can I get the initial 20,000$? This amount is huge for me. When I traded in Profiforex, I received the deposit bonuses. These bonuses help me a lot. How to get so much money to give me enough courage to risk that?
You should set stop loss near the percent on invested money that you can bear as loss.
From my personal trading experience, I can say that - put your stop loss by 50 pips and set your target profit by 100 pips. This will make your risk reward ratio as 1: 2 which is ideal for you.
I will advice to use low lot for beginners they can set stop loss on more than 20 pips . In this way they can see their positions moving lStop loss on low pips hit very wuickly as market moves 5 to 10 pips. With good analysis and reasonable SL pips traders willl get profit , With low lot they will not face high loss if SL hit first.
Utilizing equity stop
Money management strategy , as is the rule that has been a myth that should not exceed the maximum risk of 2 % to 3 % of the total equity or balance per trade . Under this regulation , you can calculate the stop loss after determining the maximum trading lots in accordance with risk that you can take. I usually set a stop loss for my account in galleass no more than 2% from my equity.
well, I'm pretty sure you would be able to place SL when making order in the market window but not all platform offer by brokers will allow you to place SL and TP but like the broker I'm currently using do allow SL to minimize your lost. and TP to lock in profit.
What's important about placing SL, Is to know your trading direction so that you know where to place it when buying or selling. You can set your SL when making order, It is always some points away from the current market price. This is why I dont bother myself because profiforex have been making it more easier for me to place orders anytime.
Stop loss should set according to lot you select and your account balance. Decide how much risk will involve with it . Try to use low risk and the loss selected by you should be affordable so that you can do next trading easily .If it hits it should not blow up your account.
Using SL had to be adapted to our trading strategy. Because the SL then we can minimize the risks even greater. A beginner trader really should use SL when trading. SL is part of risk management.
Hi,
Here is a quick and easy way to place stops and manage your risk in one go...
1) Decide how much you are prepared to risk on this trade, whether that is 0.5%, 1%, 2% of your capital or a fixed amount it doesn't matter. Remember nobody knows what the outcome of any trade will be.
2) Identify the best place to put your stop. This will usually be beyond the most recent swing high/low or a known area of significant support/resistance. Add a little more as a buffer.
3) You now know the distance between your entry and stop. Use this to calculate your position size so that your risk will be the no more than your maximum risk amount in (1) if your stop is hit.
The objective of a stop is to get you out of a trade when it looks like your reason for getting into a trade turns out to be wrong. This will vary depending on your trading method but as a general rule the other side of swings and support and resistance is a sound strategy.
Hope it helps.
Pierre Sketti