Does stop losses cause long term losses

[Daisy]

Does stop losses cause long term losses? I know that its safe to use it in some cases like long term trading and to protect your account in short term trading, while many scalper do not use it cause they do not have enough time when they spot a trend. If you set it too tight and do not allow room for bouncing then you could be taking out a trade and most likely lose instead of allowing bouncing to come p and allow you to take profit. Is this also your experience?

 

[gkintl]

Stop loss would only cause a long term loss if the strategy is structured in such a way that one entry is related to the next and so one. When there is a chain link between entry and exits then inducting a stop loss facility will result in a loss. As long as long and short position entry logic has no correlation in between, there will not be any possibility of a loss.

 

[Daisy]

I can see that if there is news release during your trade the sl can take your trade off of the market and then you might ended up in a losing trade so that is one trade. Also, if the market moves against you, because of your sl, you will be taking out of your trades and then you will lose as well. Also, if you use tight sl, you will most be likely to be taking off a lot of time so those habits will lead to long term losses, meaning you will lose a lot due to your sl setting.

 

[sindarin]

depending on your perspective towards your stop loss and how to use it, for example, if you determine a lot of pips in your SL then in the long term you will lose a lot of money, but if your SL bit then you will close position in a fast time which means you will loss in short term and with few of pips.

 

[Daisy]

depending on your perspective towards your stop loss and how to use it, for example, if you determine a lot of pips in your SL then in the long term you will lose a lot of money, but if your SL bit then you will close position in a fast time which means you will loss in short term and with few of pips.

But setting sl little will only make you waste your time in trading. First, you will be taking out too soon and thus not allowing bouncing and also not allowing for it to rise and mature enough. And also you lose out and also spread fees as well so basically you don't want to exit every trade with a small lost and you want to stay in if you can and gain some profit. Short or small sl will make the broker happy.

 

[sindarin]

Stop loss never cause any ong term losses, in my own view that SL is just a tool only that already formulated from your own strategy. So before you set SL before, make sure you already know how much pips that you can hold + spreads that you will get.

 

[UMOFX AIR]

It is not necessary to use stop loss in every trade. it is up to you you are habitual of it or monitor trades self and use seldom when you are not watching open positions. this tool is effective with good analysis reduces your loss . For long term losses you should plan accordingly.

 

[tray]

Personally I do make use of stoploss its a good tools to secure my trade and keep my trade in a condition which is what every trader need so always we need to try and protect our equity and margine from depreciation

 

[Bonyi]

I don't think it will lead to long term losses instead it will help protect your account from further loss.

 

[Decub]

It depends on how accurate your stop loss is. Long term trades generally needs a lot of care for stop loss setting because of the duration of the position. However, when he takes care of this, there is the tendency that he wouldn't experience a lot of losses due to accurate setting so it depends on how the trader sets his stops and his pip target.

 

[barood4money]

It is true that if you are not using stop loss then you are taking a big big risk. But it is also true that market never goes up or down straight. There must be some bounce. So while trading you must give some space for unexpected bouncing. If you don't give that space, then you can lose some profit.

 

[budado]

If you don't know how to trade then slowly you going to loss money and you will have no more trading capital. But still SL is going to make you loss trading capital slowly. If you don't use SL you can end up getting your funds MC right away

 

[sindarin]

What? SL caused long term losses? Maybe what you mean here is floating minus points. Well it is not like that, if you set SL at low amount of pips say around 10 pips, i'm sure your loss wouldn't be so big and only around 10 pips plus some spreads.

 

[melvinkilback]

Stop loss urges us to close a trade when we are running at mishap. It is generally used by traders who are not willing to close a trade at any given minute. It shield us from losing more than we can stand to lose. Apprentices makes use of it since the trade is diverse to them and in light of the way that they don't understand the market or couldn't make use of the analysis. I generally utilize stop loss for my trading. I really take after set and overlook run the show. I trade with Lx Markets. I trade both forex and binary options as my broker has both the facilities.

 

[Faal]

No, it’s not! Because, stop loss is the best protection! The main objective of using stop loss is, safe trading equity from any unrealistic trading result! Actually, there is no guarantee in Forex, so SL is must needed.

 

[Lee Mark]

Here knowledge is the best power! If you are trading here without having enough knowledge then you must suffer in your trading whatever low SL you are using that doesn’t mean much.

 

[Fx Master]

Setting a stop loss is an integral part of successful trading. However I think it is ridiculous to set a stop loss of 10 pips because minor fluctuations can close our order. if we place a stop loss very near like 10 pips or 15 then a good order can be closed with a loss. I prefer to place a stop loss at least 30 pips away and usually place it from 30 to 80 pips depending upon the trading strategy.

 

[Gerald Davydov]

Does stop losses cause long term losses? I know that its safe to use it in some cases like long term trading and to protect your account in short term trading, while many scalper do not use it cause they do not have enough time when they spot a trend. If you set it too tight and do not allow room for bouncing then you could be taking out a trade and most likely lose instead of allowing bouncing to come p and allow you to take profit. Is this also your experience?

No usually it doesn't. If you don't know how to use stop loss properly, you will loss money frequently. It is one of the difficult task in forex trading. If you do not want to use stop loss, you have to know other risk management system. Without risk management you can't gain in trading. It could be hedging or any trading strategy that don't require stop loss.

 

[sininfinity]

Stop loss is not the cause but it prevents long term losses. That is how I see it. Our analysis will not be right all the time and trades will go the wrong way. That's how it works. So stop loss prevents is from losing big time.

 

[MarvelPole]

In the beginning of your trading career, you need to use stop losses as there are chances of worst mistakes in the beginning. But I know many experienced traders who are reluctant to use them as they think stop losses are useless. Now it deoends on your experience level to use them or not.