Beginner Stop Loss

[Zerologic]

Stop loss may seem like a dilemma, but I think it is important to always limit losses to increase opportunities, perhaps a strategy that still needs to be explored to find the best method of entering and exiting the market.

 

[fargana]

One issue that I have had is placing my stop loss. When I started just like everybody else in a demo account 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.

It’s common to feel hesitant about stop losses when transitioning to live trading due to the emotional impact of real money. However, sticking to a disciplined stop-loss strategy is crucial—adjust your position size to accommodate tighter stops while maintaining proper risk management. Demo success often doesn’t account for the psychological pressures of live trading, so focus on consistency and emotional control.

 

[David79]

Stop loss may seem like a dilemma, but I think it is important to always limit losses to increase opportunities, perhaps a strategy that still needs to be explored to find the best method of entering and exiting the market.

I think stop loss is the key. Do you adjust SL based on market structure?

 

[Zerologic]

I think stop loss is the key. Do you adjust SL based on market structure?

Indeed, stop loss in forex trading is important to protect from big losses due to an uncertain market, usually, I put stop loss near the point of support or resistance-based analysis.

 

[David79]

Indeed, stop loss in forex trading is important to protect from big losses due to an uncertain market, usually, I put stop loss near the point of support or resistance-based analysis.

Have you ever adjust to mid trade?

 

[rmufti68]

So you widen SL during high impact news?

High impact news bring volatility in the markets making them move in any direction without giving enough time to adjust the SL however it is recommended to wait for the news release and after that we n should take trades.

 

[David79]

High impact news bring volatility in the markets making them move in any direction without giving enough time to adjust the SL however it is recommended to wait for the news release and after that we n should take trades.

it makes sense. Have you ever trade aftermath moves?

 

[redyy.v]

NFP is an important news

 

[fargana]

One issue that I have had is placing my stop loss. When I started just like everybody else in a demo account 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 switched to real money account 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?

You start from tight stop loss and then gradually widen it if it becomes necessary. I also tie my stop loss to ATR value to account for volatility.

 

[Zerologic]

NFP is an important news

Although not always, this news often causes market turmoil. Some traders may choose to stay away ahead of a news release because it can cause low liquidity and high volatility.

 

[fargana]

Although not always, this news often causes market turmoil. Some traders may choose to stay away ahead of a news release because it can cause low liquidity and high volatility.

Often it triggers some lasting trends for 2-3 days which create opportunity even for retail traders to jump in and make some profit. This is possible because of liquidity constraints for big market players i.e. they can't simply hit buy or sell and adjust their portfolio at once, they do this gradually what leads to trends

 

[rmufti68]

it makes sense. Have you ever trade aftermath moves?

The actual moves start after the news release so we may find something good to milk otherwise stay on the side lines reading the market movements in my opinion.

 

[Zerologic]

The actual moves start after the news release so we may find something good to milk otherwise stay on the side lines reading the market movements in my opinion.

But sometimes before the news, there is a spike and after the news it seems unaffected, it is said that big traders have reacted before the news because they got data from insiders.

 

[fargana]

But sometimes before the news, there is a spike and after the news it seems unaffected, it is said that big traders have reacted before the news because they got data from insiders.

Depends on the news for exmaple for NFP I think it is impossible because it would be huge shame for statistical US office

 

[Benjifxfreak8696]

One issue that I have had is placing my stop loss. When I started just like everybody else in a demo account 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 switched to real money account 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?

Common issue. In demo, no fear—so stops are wide. With real money, fear tightens stops, leading to premature exits. Fix? Set stops based on market structure & volatility, not just risk aversion. If a trade needs a wider stop, reduce position size instead of choking it. As Seneca said, ‘Fear makes us weak.’ Accept risk, place stops logically, and trade without attachment.

 

[Zerologic]

Reducing lot size may be a good idea if previously usually using normal lot sizes, traders can split into smaller fractions with varying targets for diversification.

 

[fargana]

This is great idea, diversification is key but for fx it is hard to achieve because most pairs are highly correlated or correlation is unstable