Thread: where do I have to put my stop loss

Hi
I have some problem on something just
I make couple of egies that it's working nice but constantly I have the identical difficulty
I lose all the money I am earning because I don't know how to place a useful prevent lose

after my funds was (on demo account) just 1000$ and I made inside a month 7000$ as profit but lose 5000$ since I didn't place I good stop lose

I commerce on usd/nzd
most of time that it's go 150 pipe down and up per day ( I use one day time period )

so I do mostly 50 to 100 pipe every day however at the next day I shed (250) or 150 return to 0

what do I'm missing?!

Stop loss point entirely depends on your trading style. I would rather place SL beneath 10-20 pips for bull and 5-10 for bearish trends.

Originally Posted by ;

quote You are missing a whole lot. Your risk management looks way off. As a general rule, stick with 1:1 risk/reward ratio or better. Preferably 1:2 higher time frames, but in case you've got a high probability win rate with a 1:1 risk/reward ratio then that is money in the bank. At this time it appears your risk/reward ratio is at 2.5:1-3:1 that is going to result in more wins here and there, but a sizable loss will wipe out your profits. Research risk management and money management theories to get a clearer idea of how much to risk per trade....

Well stated 100% agreed

Sorry for late replay I was sleeping

okay my egy is easy because when I was in stock market too happen for me when I use a simple egy I was making some cash but once every I attempt to make it complied I was losing a lot so always I maintain my trading egy easy and very clear

and I use normal indiors like MACD and RSI and others normally I use 2 indiors in 1 time (one for buy and one for sale ) for example

stop loss:-
normally I don't have a stop loss but if I put I must see the range the currency moves daily (average like mainly the usd/nzd moves 200 pipe so I put stop loss on 200 pipe I make per commerce 200 ( I may create 50 to 70 only )
gbp/usd moves much so I maintain the stop loss @ 70 pipe ( I earn around 25 every time )

I do a lot of winning but one reduction simply take my 4 winning
I have one egy to TP on 50 pipe on usd/nzd I really do enjoy every 10 triumph:1 lose but one take 4 or 5 of my winnings money
that mean if I have by chance 2 lose it will wash my account

so most of my egies it is 80% winning but normally I win 1 pipe and also lose three or four pipes in average

Hamed, I guess by now you already know what is wrong with you risk management egy. Aiming for lesser profits while risking too much. You need to invert that and have the (70 pips (USD/NZD)), as your risk and pips as your target profit...
Alternative you could have a predetermined percent risk/reward system- Eg, 2% risk from 4 percent reward targets- (percentage in your funding )

Sorry everyone in this thread is incorrect
not to piss u off guys however you will need to ask yourselves one important question...
why should you be compensated for making the trade?

Would you feel as if since the market creates a head and shoulders and also you and everyones grandmother discovered it... you should get paid?

A market tech should know how the underlying price action functions... you get paid to understand the market and accept the duration and risk of the trade.
And you should just trade if there's a lucrative value proposal.

Your looking at this like a gambler you might also me martingaling.

Originally Posted by ;

HamedI guess by now you know what is wrong with you risk management egy. Aiming for profits while risking too much. You need to invert that and possess the (70 pips (USD/NZD)), as your risk and pips as your goal profit... Alternative you can have a predetermined percentage risk/reward system- Eg, 2 percent risk against 4% reward goals - (percentage on your funding )

Okay I understand your point and I am doing to do it
so if my goal is. 70 pipe my stop shouldn't go. 70 pipe
also It's better to perform according to fxmastersk the goal profit 140 pipes and stop drop on 70

many thanks I will check and gave you the results

Originally Posted by ;

sorry everyone in this thread is wrong to not piss u off guys but you need to ask yourselves one major question... why should you get paid for making the transaction? Do you feel like since the market produces a head and shoulders and you and everyones grandmother noticed it... you ought to get paid? A market technician must know how the underlying price action functions... you get paid to understand the market and accept the whole period and risk of the transaction. And you should just trade if there is a lucrative value proposal. Your studying this...

I know you bro exactly what you mean but I ensure you that we are not betting first since the gambling if forbidden in our faith and second since we're opening positions when we see some point at technicl analysis as me
me some trader utilize news for there traders
so gambling is really far away from me

Originally Posted by ;

quote I know you bro exactly what you mean but ensure you that we aren't gambling first since the betting if forbidden in our faith and second since we are opening positions when ever we see some stage at technicl analysis as me me some trader use news for there traders so betting is really far away from me

what's gambling? If a pinbar forms at resistance and you sell the break place a stop at large and put a goal take profit and figure that historically you win 50% with distance at 1:1.3 r:r and hope to create money on the long term but perhaps not truly knowing the odds of their future...

how is that different than

betting on a horse which has statistically wins 20% of the time and averages a payout of 1:9? Its gambling as you dont understand the odds. By listening to the nonsense on these forums people are convinced that what they're doing isn't betting when by definition it's just in a different setting.

You are correct because real trading is not gambling. But I assure you that the way most folks on the forum do it... it is. Real trading is providing the market a reason to pay you... just like any company there is a reason why the market must pay you to your interaction... determine why you deserve to get compensated and youll be a real trader.

Great luck in your search