Level 2 Stop loss Pt 2 Discussion

Level 2 - Stop loss Pt 2 Discussion

Based on watching the video about stop losses and take profits, share your personal views about using a stop loss. Do you feel like one should always use a stop loss or are there times where not using a stop loss is better. 

This is a no judgment zone, no one answer is right or wrong, we just want to discuss when is the best time to use or not to use a stop loss based on your own personal ideologies. 

 

Record your go and do in the comments post below. Like and Comment on two others for full credit!

Responses

  1. I have tried many times to trade without a stop loss but at the end i loose my money,
    In my own view stop loss is essential especially for retail traders.

  2. Though I am new to trading, in my efforts to learn, I was listening to a podcast in which the speaker said the best and most profitable traders first learned how to be great risk managers. I never forgot that. He said that while most people come into trading only focused on getting money, he believed that people should come into trading focusing on knowing how to be great risk managers b/c once they have understood or mastered this skill, the longevity of their profitability is more likely. So, in an effort to adopt this type of mindset, I would have to say that always using a stoploss when trading is a must. Mixing up they type of stoploss you want to use based on your analysis and experience is important, but always having it in place will be a practice of mine.

  3. Having a STOPLOSS in place for me is a MUST!! It only took ONE TIME:-) for me to see the loss behind it…no matter how savvy I thought I was…Now…(from experience Later..lol) If I have time to plug in my TP…I have time to plug in my StopLoss!

    1. I know that is right! I have not started trading yet, but even reading your comment convicted me to never think I am so skillful that I do not need to engage in risk management. Thank you for sharing your honesty.

  4. I have used stop losses before when I was on my own trying to trade. but after viewing the video, I see that stoplosses comes in a variety and there are ways I can be in control when in a trade. I am learning that there will be loss of money and that is good reason why I wanted to learn more about stoplosses. I am familiar with brokers using what is called “stop hunts” on little retail trader like me. So even though this happens from brokers, using a stop loss give me an advantage to wins and holding my money. I like protecting my original and my money made. So it is being aware that brokers have many advantages over the retail trader that I needed to know how to use those 4 variety of stoplosses and it will help me grow my account while keeping more profits while deciding how much I want to risk as a loss.

  5. Yes Using Stop Loss is Essential for Trading.. It solely helps you Save some funds so You don’t Lose everything Vehemently.

  6. Actually, this lesson helped influence me to use a stop loss on an open position that I currently have in the stock market. I hope that it takes affect tomorrow so maybe I can buy back in and a make some profit, if the stock falls and activates my stop loss. It was down after hours. I have used stop losses in the past, but not in an efficient manner. As a result I have suffered, looking back now, had I done that recently, it would have saved me from what happened to some shares in the recent correction that is occurring in the stock market. I am still in the learning process, so now I realize that not only does a stop loss protect my money, but it can also benefit in terms of profiting. Thanks to FMI, I now know the importance of a stop loss, and I plan to take advantage of it in future trades.

  7. I believe that it is better to use a stoploss in most situations, the only time that I would find it a little questionable to use a stoploss, is when you are trading indices. sometimes indices can be very fast moving and gold as well, and the general energy of the industry can lead you into larger retracements. if you are trading in the right direction they will come back to that direction but in general I believe that you should use a stoploss.

    1. HI, your post reminds me of what I think sometimes about indices and stoplosses. As i am still learning about how fast indices can move, I think practicing in demo a little while will help if deciding not to use a stoploss. I have experiment with fast and psychotics pairs so still believe stops are better to have than not when it comes to managing trades.

  8. After watching the video, I think you should definitely have a stop loss in place for every trade. I think it is very risky not to use one and the world of Forex is already risky enough. I’m not willing to intentionally set myself up to lose out on money.

    1. Same here. I am with you. Using stoploss bring a sense of reassurance to the part of me that does not like the instability of risk.

  9. YES!!, Because using a stop loss will always be a part of my trading plan at all times!.. It is my safety net to my account.. Not using a stop loss would be like “driving a car without brake’s.”

    1. Indeed, in the blink of an eye things can change. I had an experience similar to Mrs. Duncan, but it wasn’t as costly. I was in in a trade with the pharmaceutical company Inovio. I was was up and in the green, my eyes were not closed that long, but when I opened them, I could not believe that the stock had taken a bunji jump into the red. A stop loss would’ve put a band aid on my losses.

  10. I will definitely use a stop loss because I am trying to prevent loss. It is a sound foundation. Who would jump out of a plane without a parachute? Someone who loves the rush. I don’t love the rush that much to lose every trade.

    1. I’m with you 100%. I do not love the rush of losing money every trade. That would actually drive me crazy actually.

  11. I feel like I personally will always use stop loss as a method to protect the money I’m investing as much as possible. I haven’t actually done any trading yet, so I do have a part of me that wonders why would I not just wait until a trade “turns around” and puts me back in profit before I get out since I’m certain trends are likely to fluctuate up as well as down. Then I think back to the “Sins of Trading” lesson… I will have stop loss in place!

    1. Yeah, I used to hope for the “turn around,” and that can really wear on a newbie traders emotions, because fear and panic starts to kick in, as the stock falls.

  12. Although I have had some successful trades that turned around for me the majority was a waste. I know completely understand the purpose and reasoning for having one and the clarity on why it is so necessary to always have one because reality is its better for my emotions to actually know my risk and draw the line in the sand

  13. Hello!

    I have tried not using a stop loss with one of my DEMO accounts. I feel uncomfortable doing it and I know others who have lost as much as $39K not using a stop loss!

    I will use a stop loss and be a student.. ALWAYS!

    Thanks,

    Genie 🙂

    1. I hope you don’t mind, but I’ve copied your post as a reminder on why I need to have stop loss in place! Thanks for sharing!

  14. Every trade should have a stop loss. I have traded before and did not use them all the time and therefore lost money.

  15. Every trade should have a stop loss; it is like your parent… it protects you. SOme instances may require a larger stoploss than others, but a stoploss should ALWAYS be used.

  16. Based on the video I think that every trade you enter should be protected by a stop loss to minimize your risk.

  17. Based on the information. It is imperative that we use the stop loss. It should be used at all times. It is protection and a safety net for my account. It is my active responsibility to manage my risk.

  18. When I began trading some of the educators didn’t use stop losses so I didn’t use them either. Taking this approach without knowing what I was doing caused me to blow my account twice. Knowing what I know now, I will use stop losses going forward. I probably would have majority of my funds in my account had I used a stop loss. I need plenty of experience before I can choose not to use a stop loss.

  19. stoploss is very important part of your trading and i think you should always set your stop loss in every trade because the market can be very unpredictable .

  20. This a true eye opener, it place you in a safe zone and help define and stick with your risk tolerance. and save you from losing money unessesarilly

  21. Stop loss is a safety net for sure. When I first started trading, I was willing to take a huge risk by not securing a stop loss. Nevertheless, that left me with more anxiety and loss of money.

  22. As stated in the teaching, stop loss should always be used during a trade. This is our safety net from losing more money than our account can bear. The market is unpredictable and without the stop loss there are high risks. The stop loss is part of a plan and helps us stay on track and organized. Wont be doing a trade without it!

  23. My personal views on SL and TP is listen to the teacher/professor. In the training it clearly says to always use a SL. This is our safety net when trading in the market. I honestly feel that being safe then sorry is necessary especially if you are a new trading.

  24. I always use a stop loss because that is the only thing we control in the market, how much money we could lose. It’s also important for my emotions because I know I won’t blow my account.

  25. I think it’s extremely important to always have a stop loss. In one of the video you talked about losing like 4000 pips I believe and that’s a lot loss. If the the Stop loss was set you would’ve been protected.

  26. I do believe setting a stop loss important and forces you to stay in tuned with your trading plan. its not just a random number which it may have seemed that way prior to this lesson. Its is calculated… which is how we should be moving as successful traders. Every part of trading is planned!

  27. I feel taking a stop loss is a very safe way to protect my account from loss, and taking profit secures the safety of my investment.

  28. In the past even though advised by my previous educators to use a stoploss, there have been times I did not set it one time, when starting the trade or move to break even stop loss because there were many times it would retest, then move into take profit. However, there were times when it went in a negative and would have started the trade telling myself, all I want to risk is 30 pips but then when it reached 30 pips, would find it hard to close and the figure kept extending till 50 pips. Then I would be forced to close and felt upset because instead of loosing 30 pips I lost more. That feeling of feeling like its going to turn around. Since starting this program I have learned at that time when I was feeling so wasn’t my thinking brain and if I add retest to my trigger and my stoploss to my system, it will mean that I don’t have to worry about it hitting my break even stoploss. By setting my stoploss helps keep me in check for the self-control I lack to close off manually. Plus when I fall asleep if it goes negative it’s ok. There was a time I fell asleep before setting my stoploss, when I woke up was worried. Luckily, I won the trade but trading should not be based on lock but on being able to help you mange risks which is what a stoploss is. Hope you learn from my mistakes and use a stoploss.

  29. A very great tool to use. I am yet to start active trading as I am still going through the course work but the concept will be helpful

    1. I am now where you were months ago and looking forward to the same. Hope you’ve had much luck with utilizing it in your trading career.

  30. First I need to say that I have come a LONG way since I stared the academy and since I was last active. So, for sure must always have SL. When I first started, I heard it somehow I must have thought that I knew myself better then the educators knew about trading and so honestly did not use it all the time. Now, I know a litto better and so I use SL always.

  31. Upon watching the video on stop losses and take profit I feel that you should always set a stop loss its the only way of minimizing your risk and taking responsibility for my account.

  32. Upon watching the video on stop losses and take profit I feel that you should always set a stop loss its the only way of minimizing your risk and taking responsibility for my account.

    1. Mustang 70

      I agree that we should always set a stop loss and take profit that would minimize our risk and take responsibility of my account.

  33. I feel like they should always be used, however I have not in the past. When I did use the SL often the market would trigger my stop and then go up and reach my profit point after it took me out of the market. I know that if wasn’t personal, but it feels like the market seeks out SL and then moves up.

  34. As a trader, you should treat it as a business and successful companies are in business to make money; therefore, use of a stop loss has proven to be to your gain or as a sure tool to minimize or avoid loss.

  35. The short answer is YES of course. If I am understanding correctly I can use a take profit stop loss and just get back in the trade and take a few more take profits. It only makes since to take money when it is there rather than risk loosing it all. The goal for me is to take profit not gamble and see how long can we ride this out. I believe in the video you said we would learn when to use each stop loss for each occasion. Looking forward to learning more on how to SECURE & PROTECT the bag!

  36. I am working on my Go and Do. It has to do with using a stop loss and if I think it should be used. ABSOLUTELY!! 1000%. Limiting losses is just as good as taking profits. I prefer taking profits of course. Stop loss is right to the point of what you want to do. So why wouldn’t you use one? Setting the right foundation is so important. That’s why I am so glad I’m getting good instructions to develop good habits to help me be a successful trader.

  37. STOP LOSS – I wouldn’t jump from an airplane without a parachute OR swim in the ocean without a lifevest. Or in this current climate, go out in public without a face mask. MUST HAVE PROTECTION.

  38. I could have had more success in the past if I knew the MANY functions of the Stop Loss. Knowing that I could have used Stop Profit or a Trailing Stop Loss to secure funds while my trade was in profit is literally driving me up a wall!! I have had too many trades that were going in the desired direction then suddenly reverse all the way back to my Protective Stop Loss. These strategies alone have boost my confidence for entering my next trade!

  39. I could have had more success in the past if I knew the MANY functions of the Stop Loss. Knowing that I could have used Stop Profit or a Trailing Stop Loss to secure funds while my trade was in profit is literally driving me up a wall!! I have had too many trades that were going in the desired direction then suddenly reverse all the way back to my Protective Stop Loss. These strategies alone have boost my confidence for entering my next trade!

  40. Yes, I always set stop loss and take profits, that is my security in the market. We all know that market can do crazy movement at anytime and setting stop loss & take profit will protect me from unpredictable movement.

    1. Yes, setting a stop loss and take profit are a must! I remember a time where I loss so much on a trade because I forgot to set a SL before I went to sleep! Dang London session!

  41. Stop losses are a necessity in trading. It’s something that shouldn’t be taken lightly and protects your investments. Stop losses allows you to keep yourself accountable by having a strategic plan. It also eliminates the opportunity to trade emotionally!

  42. I feel that one should always use a stop loss. It should be included in your plan/ system so that nothing is unexpected. Unexpected losses can cause you to trade with emotions thus, causing you to make irrational trading decisions which could ultimately cause you to lose even more.

    1. jalexandra3

      Yes, I feel that one should always use a stop loss. It should be included in your plan/ system so that nothing is unexpected. Be mindful about trading decision which could cause a lose.

  43. Stoplosses should always be used. My Motto is, “You don’t have to worry about getting stopped out because you can always get back in when/if the setup is ready. But if you’re wrong you don’t have to lose your account being married to the wrong direction.

  44. There are absolutely no times when a trader should not use a stop loss. It is the safety net to protect your account. I don’t like losing money. So, I will set them ahead of time.

  45. I believe in stop losses at every entry you place, move the stop loss as you gain profit so that if your pair goes back sooner than expected you end with profit instead of losing the whole trade. Stops are very important for managing and building your account.

    1. Stop losses secure existing profits in the even things change. I also think they should be place each time you enter the market.

  46. I’m selfemployed. So I know I’m making more money,  because by working more houres than an employee. 

    If you can minimize your risk on trading. Why don’t you use the  tool Stop Loss?! It takes some time to make profit. But losing money it can go very quickly in one time. So I  agree to use propre risk management and don’t be greedy!

    I will never forget Warren Buffet advice: protect your orignal money, then make some money and protect again! 

    Trading envolves risks, like being an entrepeneur you always should calculate your profits and risks.

    Good to read the bad experience of others without using Stop Loss. So every trader has been warned. We actually have a saying in Duth: “a man who has been warned is worth two!”

    Anywhy I’m looking forward how to apply the SL and TP, risk percentage per trade, risk/reward ratio on the charts. 

  47. Im still a novice so stop loss will defintely be used every time. Even if i was an excellent trader there are so many variables that could affect the way a trade could go. A stop loss protects against blowing your acvount on a bad trade. I work hard for my money and dont want to lose it due to an unavoidable mistake

    1. I’m also a newbie. There is always risk involved, but If it can be managed by using Stop Loss. I would definitely no doubt about it! I agree working hard for your wages and then losing all your money by bad habits or not knowing what you are doing. It will be everyone’s nightmare. I still have to feed my family.

  48. I’ve learned some hard lessons about setting Stop Losses…and from here on out, I will always include a Stop Loss in my trading. I know many think to you don’t need a SL because “you have to let price do its thing”…Also, many think you don’t need a SL because you can just manually close trade. First, I don’t have time to watch trades all day. Second, while I’ll trust my analysis, I know I can’t predict what price is going to do, so I need that “protection” of the SL.
    I want to create a solid system where I open a trade and that trade will either end with a SL or TP…I will then learn from those that closed by my SL. If I don’t put a SL, and price goes psycho, the other way, then it will be a costly lesson, that I could have prevented. I’m ok if my trade didn’t pan out, as long as I place a SL that goes along with my risk management plan. If anything, that SL will help me “let it go”…once it hits, that’s it…on to the next trade. Plus, those trailing SL’s feel so good some times. LOL

    1. I don’t have to keep watching the market all day either…the stop loss will be one of my best buddies.

  49. Even though I have only traded in demo, I always had to have a SL in place. I need to know how much I can potentially lose on every single trade. There were times that my SL kicked me out of a trade, but I played around with moving some of my stops and was able to stay in them. I do need more practice in this area.

  50. I must admit in the past I have tested trades without a stop loss because I got frustrated with trades going in the direction I expected but only after hitting my stop loss first.

    However, going through the FMI courses thus far I have realized that it was most likely due to me basing my stop loss position on highs/lows that were just speed bumps instead of the real highs/lows of the trend. Based on looking at the market since then I am seeing much better opportunities and am excited to create a trading plan with strict rules on always using a stop loss while considering risk percentage per trade, risk to reward ratios, adequate SL placement and when to move it to protect my investment as much as possible.

    1. I had some of the same experiences. From the information I am learning now, I think I will also be able to see better opportunities and make better choices so that this doesn’t happen as often.

    2. I had a very similar experience. I entered all my trades without an SL. Had a good run, but then the reality hit. Took me 3 months to build a great account to lose within hours 🙁 It was a very painful moment. I built bad habits and now it is taking me hard work to break the bad habit. I learn my lessons the hard and expensive way 🙁 Stay disciplined. This is all part of our psychology and becoming better. PROTECT YOUR MONEY THEN MAKE YOUR MONEY!!!!

  51. I will always use a stop loss, just like I will always be a student. I’m not into giving money back, trading is my none return zone. If I’m trading, I always have a trailing Stop in place to keep my bag.

    1. That’s great @CurtisRebootyou, it sounds as if you have already determined your rules for a trailing stop. I am looking forward to learning the best way to incorporate that when I get to the money management lessons.

    2. You are on the right path for sure. As long as you stay disciplined to place the SL then you always will Protect your money. It is never fun to see it all go away within seconds to minutes. It’s very painful. Learn good habits and stay away from bad ones.

  52. I am a firm believe in always using a stop loss – proper risk management. 100% irresponsible not to use a stop loss.

  53. I’ve seen people use a stop loss and i always use one but i have also seen people not use them. The reasoning is if they are continually watching the trade then they have no need for one. In my opinion that is really wrong you absolutely need one.. you never know what the market will do EVER! you put your trade in with no stop loss that is like driving with no brakes. always you a stop loss…always!!

    1. I totally agree @mandmcrump, I have personally tried trading without a stop loss a couple of times in the past and there is no other feeling like the panic when you glance back at the trade and see that it has gone much further in the negative than you expected. We should ALWAYS use a stop loss and I am more confident now that I understand the best way in which to use one to protect an investment without hindering a positive outcome.

  54. I feel like you should always have a stop loss in place when placing any type of trade. The market is really unpredictable. It can change within a blink of an eye. Having a stop loss in place is also important to minimize risk. It helps reduce the fear of the unknown. Going into each trade I already know how much I can expect to lose when having a stop loss in play, which also helps with trading anxiety.

    1. exactly!! you’ve already accounted for a certain loss, you can breathe during the trade because you know either way you are ok!!

  55. I am guilty of trading without a stop loss and have often regretted it. Sometimes I had to say in the trade over the weekend until it comes back then I jump out and it keep going in profit, smh. WOW! Every time I would say I’m not doing that again then it happens again. I am a lot more careful now and make sure I put in my stop loss. If I am scalping on the 1 minute or 5 minute chart and right in front of my computer I usually don’t cause I am not in for long.

    1. i scalp on the 5 min chart as well and i didn’t put a sl a couple times to me it was more stressful not knowing if i was going to plummet into the major loss zone i ended up closing out early because of fear, losing, and then trade went in my direction you are brave my dear lol

    2. I watching a person scalping 1 & 5 minute charts we heard a scream from his son upstairs, 3 hours later after coming from the hospital a $100,000 was $0. You never know what can happen, if you have a safety net you are prepared for life.

  56. I believe that a stop loss should always be used. It helps minimize the potential loss of money, and that’s always a good thing in trading. It seems to me that not using a stop loss is feeding the following of the 7 deadly sins of trading…Greed and Lust. The lack of a stop loss would ultimately lead to the deadly sin of Wrath because lots of money could be lost and if this happens the trader may become extremely angry/mad at the market and try to get back all the money lost while in an illogical and irrational state of mind.

    1. I agree as well. A stop loss should always be used when placing a trade. Placing a stop loss on all my trades is apart of my trading plan. If I can not find a clear stop loss point I do not place or if my stop loss is greater then my profit. It helps with risk management and keeps from blowing more then you expect.

  57. When I started out a year ago I knew that I had been taught that using stop losses was the best way to trade. However, I had trouble with trying to accurately calculate what my stop loss would be. I didn’t understand how to calculate my risk and so I ended up risking way too much on single trades.

    This time around, FMI has really helped me to train and practice marking up charts and I’m really understanding the value of mastering drawing support and resistance, logging and journaling and that has helped make me feel more accountable for every trade. I think that a good and consistently succesful trader will use stop losses for EVERY trade no matter what. It is easy to set up when getting into a trade or modifying for right after you get in.

    If you want to control your risk and how much you stand to lose on each trade, stop losses are a no brainer!

    1. I don’t quite understand exactly where to stop losses yet in relation to how much I want to risk on any given trade, but I know that they are definitely important if one wants to minimize risk! It’s encouraging to see that you have learned more about where to put a SL in order to minimize risks on trades.

    2. Starting off I did not understand how to use a stop loss either. After learning how to properly use it, it has become my best friend lol.