stop loss for daily
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Thread: stop loss for daily

  1. #1
    Do you guys believe a stop loss of 30 pips when trading on a daily is reasonable? Bout 40 pips using a path stop of 30? I would like to begin with a $300 deposit on reside. I would like to be certain my losses are not too harmful to my little beginning account.

  2. #2
    Quote Originally Posted by ;
    Do you guys believe a stop reduction of 30 pips when investing on a daily is fair? How bout 40 pips with a trail stop of 30? I would like to begin with a $300 deposit on live. I would like to make certain my losses are not that harmful for my little starting account.
    Using stops is based on the trader, his character, his egy, his trading capital so on....

    In my view, a 30 pips stop on a daily chart is very tight. . .It depends on the volatility of the currency pair that you are investing of course, however it is still very tight for the cheapest volatile pairs out there (Such as the AUD/USD for example)...

    In my view also, if you're starting with $300 to test out the waters, then you should begin with a micro account, where it is possible to trade micro lots ($1,000 lots). . .Check FX Solutions Oanda for this particular....But if that really is your starting capital, you won't produce any decent profits except after two decades of constant profits, and $300 is far too little to begin with if you're looking for decent profits in a 6 months period provided that you'll trading successfully. . .It's a business, so treat it like a company. . .If you begin big, you grow larger, if you start small, you'll need to grow big first then grow larger. . .Just like any company you'll think of to begin, if your capital is Limited, your business will be little will generate small profits...


    Thanks,

    Nader

  3. #3
    Hello, I've a 200 EUR account and that I exchange dailies without a problem and that I use stop losses much bigger than 30pips. Since I use a broker which allows me to specify my position dimension to the smallest device. The broker is Oanda.

    Quote Originally Posted by ;
    Do you guys think that a stop reduction of 30 pips when investing on a daily is fair? How bout 40 pips with a path stop of 30? I want to begin with a $300 deposit on live. I want to make sure my losses aren't too harmful to my small beginning account.

  4. #4
    Quote Originally Posted by ;
    Hello, I've a 200 EUR account and I exchange dailies with no issue and I use stop losses substantially bigger than 30pips. Because I use a broker which enables me to specify my position size to the smallest device. The broker is Oanda.
    30pips is way too tiny. . And with a trailing stop you will be stopped out from 5 to -30 pips for 9 out of 10 trades when the market moves in your direction.

    Examine it on demo and you'll see.

  5. #5
    I have a semi-daily egy that's my primary long term trend following egy. My stops in pips vary from 1 trade to the next but my risk is always 2-3%.

    30 pips, as narafa has suggested, is VERY tight. I really do 20 pips on my intraday egies...

    you need to be aware of the currency pair you're trading, but somewhere in the range of 75-100 is more realistic.

    And regarding the quantity of money you're starting out together -- it is all relative how much you make. If you deposit $300 and you are always making 1 percent a week, you're doing very nicely.

  6. #6
    You are right, 300 isn't much to begin with. Ever since I am new 300 is perfect. And also I don't mind losing all of it, like they say, use the amount of money you may lose in fx.
    But I would like to experience a few transactions before losing all that I know that my egy actually works in the real market. So I'm thinking about that a 50 stop loss and proceed to break once I get 30 pips in profit.
    Usually, utilizing the daily chart, you're considering least a 1:3 risk reward ratio. And usually one good trade overrides few bad ones.

    My egy is using a ema 10,20 and fast and slow stochs. When the speedy stoch k crosses the Id wait for exactly the identical thing to occur on the slow stoch. And I look at the direction of the ema 10 to observe the strength of the trend. I depart if the speedy stoch k crosses d again. I sort of follow shlossberg risk management: wait for many signs to line up before entering position, then depart on the very first symptom of trend weakness..it just makes sense to me


    so
    50 prevent reduction, trail stop 30 pips. . .sounds great to me. .
    thanks

  7. #7
    Hmmm... 50 seems so arbritrary.

    Why don't you take a look at the volatility along with the range of the pair you are trading? Assuming a long commerce,,,,,From the previous month would you see congestion on the chart below your current price? How many times has been hit over the month? Can there be a amount or range or area where price has hit and bounced back up occasions? Below that's where you should consider putting your stop. Otherwise your account will bleed to death by stops.

    What you appear to be hoping for with tight stops will be to hit a jackpot of X amount of breakouts in your path. Isnt that the randomness of the market equally likely to break against you?

    I reiterate what others advoe. Find a broker using micro lots. If you dont like their charting subsequently secure free charts and also have one dealing desk along with another chart pkg running at precisely the exact same time. Check out a thread open right now here on FFF regarding what chart pkgs to utilize. Lots of tips.

  8. #8
    Quote Originally Posted by ;
    But I would like to experience a couple trades prior to losing all that so I know my egy truly works in the actual market.
    Why are you placing yourself into losing your equity from the very beginning....Winners think like winners, therefore always think as a winner. . .Think of each trade as a winner only consider it a failure when the market shows you wrong...

    Quote Originally Posted by ;
    So I am considering a 50 stop loss and move to break once I get 30 pips in profit.
    Usually, utilizing the daily chart, you are looking at at least a 1:3 risk reward ratio. And usually one good trade overrides few poor ones.
    With such a set up, you'll have an excessive amount of breakeven trades than you can possibly imagine. . .It all depends on the volatility of this pair of course, but I Believe that is still too tight...


    Thanks,

    Nader

  9. #9
    Quote Originally Posted by ;
    you're right, 300 is not much to begin with. Ever since I am new 300 is perfect. And plus I do not mind losing all of it, like they say, use the amount of money that you can lose in fx.
    But I want to experience a few trades before dropping all that so I understand that my egy actually works in the actual market. So I am thinking about a 50 stop loss and move to split even once I get 30 pips in profit.
    Usually, utilizing the daily chart, you're looking at least a 1:3 risk reward ratio. And usually one good trade overrides few poor ones.

    My egy would be with a ema 10,20 and fast and slow stochs. When the fast stoch k crosses the d, I wait for the identical thing to happen on the slow stoch. And I look at the direction of this ema 10 to see the strength of this trend. I exit when the fast stoch k crosses Id. I sort of follow shlossberg risk management: wait for all signals to line up prior to entering place, then exit on the first sign of trend weakness..it only makes sense to me


    so
    50 prevent loss, trail stop 30 pips. . .sounds good to me. .
    Thanks
    No crime bud, but you sound like you're only ready to gamble it away. If you want action, return to your local poker room...

  10. #10
    30 pips can be sufficient. If you take the trade decision based on a daily chart and wait for a better entry on smaller period, for example hour on 15 minutes. Should you open the trade when the day starts... I do not think it's enough.

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