When I first started trading Forex I would go with a 12 pip stop loss. I learned very fast this is no good so I now go with 50 - 100 pips on the EUR/USD. 50 has worked well but I did get burned once and got closed out early on a trade that would have been profitable, so I might stick with a 100 pip stop. How many pips stop do you guys use? Thanks
This question is completely meaningless without knowing what timeframe you're trading, what you're profit targets are and how they are derived, and what the trading strategy is. You're question implies a desire to know what is best, and there is no best. THere is only what works and what is useful for a given situation.
Good point, I never thought of it that way. My profit would be also 50 -100 pips and time frame 1 day. Trade is based on 1 week trend. Leverage at 200:1 on 1 lot trades ($50.00) with $1000 in Refcofx mini-account.
12 pip stop wasn't a bad idea, but doesn't work with Spot forex, it works much better in futures. Let say you are trading biggest mover which is GBP/USD and it spread 8 pips during news and 4 ticks against you will stop you out. Globex GBP has maximum of 3-4 pips spread during news and it' value is about 6 mini-lot of GBP/USD. European session and overlap times is 1-2 spread for GBP, while GBP/USD is 4 pips, tell me how it's possibe to scalp?
Then the question becomes, what is your batting average? If you're 50% accurate on trades, and win $ = loss $, the whole game is for nothing. Never lose sight that trading is a game of numbers and probabitlity. It is NOT about prediction. All of technical analysis is to serve one master, reduction of risk.
I trade fx futures. Scalp - 5 Point Stop Short Term trade (5-10 Minutes) - 10 Point Stop Mid-Term trade (30-60 Minutes) - 12 Point Stop Mind you I don't blink when I trade fx and I will try to get out ASAP if its not going my way right away. Stop's are just there for the worst case scenario, I'm usually out before they hit. ozzy
Dude...don't you just love the 6E? Soooooooo much better than spot. I use a 5 or 6 tick stop and go for 10 to 15 ticks depending on the time of day and how fast the market is moving.
How would American's put it........ It's the shizznaaaaaaaaaaa. I'm planning to exclusively trade the fx futures. Trading options/futures/fx has thrown me off a little. Gonna concentrate solely on my baby the fx market (and maybe some options here and there to get my fix in). ozzy
The stop loss is directly proportional to your trading time fram... If you scalp, you can use 5-10 pips sl Medium term 30-80 pips Long term 100-150 pips