How To Set Stop Loss Accurately

[moonchild]

Stop loss are every traders last defense, if a trade is not going according to your plan the next thing that happens is your stop loss get hit and you are out of the market.

Many traders don't know how to set accurate stop loss and they complain about how market always hit their stop before going to their intended or pre planned direction, this article aims at providing a solution for that through a simple yet effective strategy, first of all, when you spot a trade on a higher timeframe, the next thing to do is to move to the lower timeframe.

Understand what's happening on lower timeframes, look at the key support and resistance, and also remember the more a zone is tested the more susceptible it I to be broken, so you need to find a zone that is not tested countless times, and use a horizontal line to demarcate it.

Now, put your stop loss just below it, with 40 pips, this will make sure your account is protected from spikes that may happen, if you don't have enough equity you can reduce your lot size and use a cent account to be able to take more pips when setting stop loss.

 

[FXOchartist]

Loss in trading sometimes undeniable, the nature of the market itself very dynamic, and no exact math to calculating the price will where to stop and where to go. However here trader learn to placed stop loss based on experience and also knowledge.

The first to minimize the risk is trader traded based the trend. When major trend tendencies to bullish strong rally, placed stop loss by looking nearest support zone level on low timeframe, here sometimes to become dilemma, tight stop loss maybe often hit by price, large stop loss when one stop loss hit need more time to recovery.

How to placed stop loss depends on our preference, this counted maximum risk in single plan and related to distance pip between ask price to stop loss will be placed.

 

[Mary Frederick]

Don’t get allured by the mesmerizing packages of scam brokers. Traders must be very much careful about selecting brokers. But I have been with Eurotrader broker for a long time and this is really a scam free broker. The broker ensures high security of funding so big investors can easily entrust their fund into the broker.