Dear traders, I want to ask you questions about trading:
Do you use stoploss or not?
2. Why do you use stoploss and why you don't?
3. How many pips do you use your stoploss?
You always have to use stoploss. Here are few reason:
- Power might go out.
- Your computer might break
- Everyone needs to sleep/rest/eat/...(you might continue this list yourself)
- One of the ways to control risk
- And so on...and so forth...
HOW TO: OPEN A TRADING ACCOUNT UNDER 18 - CUSTODIAL ACCOUNT
Why not? What do you gain by not using it?
You might survive a market swing. Although, you will survive it anyways if you calculate your risk and stop loss according to you strategies.
It all depends on your R/R ratio and trading strategy. As for beginners, it is recommended to start with 1 to 1.5, which means that for every 3 pips you plan to win, you would risk loosing 2 pips.
Smaller your R/R ratio more trades you could afford to loose. For example if you trade with 1/2 ratio you need 1 profitable trade to cover to losses. But if you use 1/5 R/R ratio...you will only need 1 trade to cover all 5 losses.
I hope it makes sense.