How Is My Trading Style. - page 5
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Stop loss is there to manage risk -that's it that is the only reason everyone advocates using a stop loss. However there are many other ways to manage risk such as scaling in (still have stop but it means the stop is wider and noise does not negate your edge) trading small is a very good way (traders lose because they exit profit too quickly relative to loss.with loss they tend to let it run-trading small removes the emotions and allows you to be more objective). Let me give you a example 1year ago euro usdollar was in a downtrend on weekly daily charts. If you shorted at one entry point then you would have to get your timing perfect otherwise you keep getting stopped especially if you use a small stop so you keep missing the big down moves even though you have direction correct ...what happened? If you have truly understood how the markets work you will know that the markets are not science they do not move perfectly.it is a constant struggle between buyers sellers it's an auction market. There are strong players and weak and you know what the strong players sell as high as they can in a downtrend on weekly daily chart around the same time as the weak players are getting stopped out. So use stops yes but understand first why you use stops and whether your stops as a group might be exploited. The way you many your risk depends on the trade setup and strategy you use and how long your trades are open/exposed.for quick trades stop is fine for trades that will last a few days try scaling in at best price when price is retracing against your direction. Why because in a swing trade you want to get in at best price in a scalp this is suicide because in a scalp you need perfect timing so go in the current direction... I've ranted enough but if you try and understand the above you will go along way to being consistently profitable
I used stoploss but not a fixed stoploss.not yet figured out how fixed SL is profitable.Flexible stoploss is better for me which I used as per price actions.