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Stoploss

DJI: Kill zone ahead - scary stuff! It's a kill zone. But note carefully there are losses here. You can't win in this business unless you're prepared to lose! I would welcome arguments on that one. The chart shows that the rebellion of price looks powerful but on the squeeze momentum assessment it isn't that powerful. Price movements tend to scare new traders. Well, okay - if you can't take the loss stay out. In this position I cannot predict that price will fall nor can I predict that price will bust up and through the kill zone. All I can do is take a loss - an affordable one. There is a natural bias for winning positions. Hence seemingly unlikely positions tend not to be shown. When price moves north it is natural to think it will continue moving north. But what if the trend picture is showing probability for the south at the same time. Scary stuff! Disclaimers : This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FOREXCOM:US30Short
by Captain_Walker
CHALLENGE: AUDJPY - PLACE YOUR BETSAhoy! There is money to be made and lost here! 🤦‍♂️😂 I'm short with with an affordable loss. Others may wish to go long with an affordable loss. It's not about how right you are but how much you limit your loss if you're wrong. This is a nice one for new traders to experiment with on a paper trading account. 👊 Trading is a strange activity i.e. you can't make money unless you're prepared to lose. 😟 Disclaimers : This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
by Captain_Walker
Is there stop loss hunting in trading ? How to deal with it ?Hello everyone: Today I want to discuss a common discussion about new and experienced traders. “Is there stop loss hunting in trading?” Many wonder, since they can all recall the moment where price just hits their SL on a trade, and then the market quickly turns around towards their desired profit direction. I want to dig deeper into this and explain it with different viewpoints, from a technical and psychological view. The vision I am trying to provide is that, thinking about is there stop loss from the brokers won't help you to get better in trading. It's a mindset thing we need to understand. For example, whether there is or isn't a stop loss hunting, it's nothing you or I can change or control. It is what it is. However, if you understand this, then it's about adjusting your plan, strategies and trading style to these types of volatility moves and come up with the correct mindset to work around it. Technical part: More often, people set their SL and see their trades get taken out just a few pips above before reversing the opposite way. Dig deeper into this. Is it a fake breakout, is it just being impatient and jumping the gun? Is there LTF continuation/reversal correction that gives you bias to enter a long/short ? Is your analysis aligned with the higher time frames ? Many factors on why a trade is at a loss, no need to jump right into a conclusion that it's the broker who is stop hunting you. This is why we always look for confirmation and confluence when we enter trades. Just because the price breaks the support and resistance line people often use, it's not an automatic buy or sell. Same goes with trend lines and other indicators people use. We need to confirm it with price action. After an impulse phrase, was there a continuation correction phrase? If not, then it doesn't justify a buy entry. This is also why we backtest so we see these types of price action often, and acknowledge what we need to do in order to work our ways around it. Psychological part: When traders take a loss in this way, hitting the SL and reverse, this creates a negative emotion in them. They often get frustrated and upset, hence in human nature, we tend to blame others. But take a step back and understand this: The market can do whatever it wants to do. Most beginner and newcomer traders think the market MUST follow their strategies and style. If it doesn't, then something is wrong with the market, the brokers, their mentor/coach, their strategies...etc. This negative mindset needs to change. First of all no strategies and style will promise you 100% strike rate and profit. Any strategies you take will incur a loss, it's how you deal and manage it that will show you as a consistent or inconsistent trader. Second, if you have experienced several losses due to the “Stop hunt” in your own mind, then instead of blaming the brokers or the markets, start looking into your trading plan and management. Are you experiencing FOMO ? Are you over leverage trading, and revenge trading ? Are you taking into consideration your risk management ? Entry, SL/TP, how much to risk ? Is it consistent with your plan ? These are the things you can control, rather than external factors which you can not. Adjust yourself. Third, remove your negative emotion from your losses. Take it as a learning curve and experiences earned. Then the next time you enter a trade, you will remember the lessons that were taught to you by the market. This is why we journal our trades so we can look back at them and understand what we did. I hope these few pointers will help some of you to get back on the positive direction of trading. No need to think and get upset if there is a stop hunting of your trades. Instead, use that towards your advantages. If you consistently see a false breakout and reverse, then come up with a strategy and plan to capture that reversal move. No need to blame the market or the broker, that is something you can not control. Jumping brokers to brothers simply won't help you to eliminate that psychological mindset of a stop hunting. I will put below several other educational videos on the topic we discussed today. As always, any questions, comments or feedback welcome to let me know :) Trading Plan: Risk Management: Trading Psychology: FOMO: Revenge Trading: Over Leverage:
Editors' picks
BITSTAMP:BTCUSDEducation
by jojofang0901
68
STOP LOSS MISTAKES THAT EVERY NEW TRADER DOES !1. Using Position Size Instead Of Technical Analysis To Determine Stoploss Don't let your lot size determine your SL value. It should be the other way around. If you pick your entry using technical analysis, then you should do the same for your Stop loss. 2. Placing Stop loss Exactly On Support Or Resistance Levels 3. Placing Stop loss Depending On the Market Moves 4. Placing Very Tight Stop loss On Trades If the stop loss is too far away, this may reduce your risk to reward ratio. If your stop loss is so close to entry, you will be stopped out easily. 5. Placing Stop loss Too Wide. Always place stops where analysis is invalid.
BITSTAMP:BTCUSDEducation
by dhruvchaddha
5
Set your Stop-Loss, we're on a run to somewhere...Long position remains. Confirmed, we are on a 4 day+ run. XLM broke above our gold resistance line of $.40, which was the .702 Fib. BUT not only did it break above that, it also broke above the .786 Fib, which to me indicates that we are going to be on a slow climb to...possibly...a new high. I'm setting my short position for the .786 FIB on the previous cycle. Most importantly, because we are in a bull cycle, I'm placing my short position at 5% +/-. Just in case we break higher, I won't lose too much in my trading bag. Please advise for further clarification. Happy trading my friends. NOT FINANCIAL ADVICE
BINANCE:XLMUSDLong
by Mr_Joshua_XRP
1
Stoploss EducationOne of strong topics i want to write about it for long time ago TYPES OF STOPLOSS 🛑 : MANUAL AND AUTOMATIC FIRST / Manual Stoploss : Trader wait for the candels to close below support for exit not just hit it ! Example for manual stoploss : Most common using 15min - 1H - 4H - 1D - 1W candels closing below support area ..it can also used in alot of timeframes Advantages Of Manual Stoploss : – The best for investors and long term traders – Best in spot and small leverage trading – Coins didnt moved yet and still in accumulation phase –Avoid manipulation by market makers ...alot of times market makers will try to hit stoploss by wick or flash drop then price get recover fast after,, This move is very common in certain areas and push the weak hands outside of market by loss SECOND / Automatic Stoploss : Trader set Automatic stoploss in exchanges Advantages Of Automatic Stoploss : – Good for short term traders (fast food) – Best in high leverage trading – Coin pumped high in short time you follow your position by keep moving your stoploss continously –good in high volatile coins (example in these days : doge - xrp 😁) For myself most of times i use the first one manual stoploss What about you ...what do you prefer ?
BITSTAMP:BTCUSDEducation
by Babenski
40
I LOST 70% OF MY CAPITAL WITH THE SAME MISTAKE => OVERTRADINGHello Traders, today I want show you a point of my live, that I constantly overlooked. I want sensitize you for it and also make me so a reminder for the future! 1. OVERTRADING It's the truth: In the past I lost 70% of my capital with overtrading. If you find yourself there then I would be sensitize you to rethink your approach of trading. On the chart above you can see how I take at the beginning all rules what I learned before: Only 1% of my capital I choose for risk with using StoppLoss Support and Resistance are STOPPLOSS and TAKEPROFIT, depence on trading direction I choose a Takeprofit more then 2 times of my risk => I lost the most time with this rules But the rules are not the problem! The problem was my overtrading. I see only "ONE" signal to take action => then it overcomes to reaction buy, no no, sell... dame, better buy and so on => always if I was in loss I tried to rethink my trade 24/7 hours in front of the screen. 2. SUPPORT AND RESISTANCE: THE WORST ENTRY POINTS EVER, BUT GOOD STOPLOSS AND TAKEPROFIT AREAS Another thing is, that support and resistance areas are good reverse moments. Every greedy trader like I used to be, try to catch the early trade to make more money than anyone can imagine. Then back to reality: you get stopped. The market takes your money and you don't realize why! On this moment, you have your own opinion of the market and this your mistake to believe you are right. You hadn't wait enough! 3. BE PATIENCE - TRADE LATE AND RIGHT THEN EARLY AND WRONG (MULTIPLE) The headline above in point 3. is since my realizing the importast rule. Trade late and right! Because the other thing of trading you can: the right risk, the winning opportunity. Sometimes it helps to look in deeper timeframes, to get enough win-risk-ratio. Hopefully it helps you! Kind regards NXT2017
EUREX:FDXM1!Education
by NXT2017
5
BITCOIN: Possible 2H trend resumptionThe chart focuses on the 2H ATR trend line. Bitcoin was in a 2H uptrend. The trend weakened and corrected in a 2H pattern. Now it seems to be resuming. The position is ripe for a short with a reasonable stop-loss, at your own risk. If you cannot take the loss, do not enter! This is a true trend following setup. No targets are possible. Stops are somewhere above the ATR line. Disclaimers : This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
BITFINEX:BTCUSDShort
by Captain_Walker
AAPL will break-out on earnings; cup & handleA cup and handle formation has formed. Apple is due for a break-out. Not only is the cup-&-handle forming, but the stock has already contended with it's most recent high. More often than not, a stock will blast through previous resistance if it has already been tested and rejected once; as Apple has. Go long AAPL. Earnings will make it pop. Stop loss: $125.00 Buy under: $140.00 Sell half after it hits $155 With the new turmoil at IBM and Intel, the M1 chip is even more significant now than ever; especially with most automakers having backorders for their semiconductor chips needed for a car. Even though Apple does not specialize in this if they can execute better than the generational chip companies, then they will most likely be the first choice for any other chip project based on AAPL's superiority & reliability. The stock should easily reach $150, and most likely carry on once the momentum traders tag along. I see a final selling price target of roughly $175. It should hit major resistance if it blows past $150/160.
NASDAQ:AAPLLong
by EBITDAtiger
4
Why a small stop loss will hurt you! What you should do Hello traders! I am sure when you started out in trading, you heard the saying "cut losses short and let profits run" from other traders. Yes, that is correct, but it lacks something important. What is exactly a stop loss? How big should it be? Least probably you asked these questions when you read them. If you don't know what a stop loss is, it is a price line as to when the prices hit it, you "cut" your losses by exiting your position. Here is an example: Unfortunately, many traders interpret it as that a loss should be cut short immediately, and that the stop loss should be small in relevance to the target price. The traders now translate this to having a small stop loss to minimize loss. Seems right at first glance, but it is not. Why is it wrong? I can give you reasons you should avoid small stop losses : 1. Fails to take into account market volatility Let us take Stock X. Let's say this Stock X trades from $10 to $11. If you put your stop at $10.9 for example, it is very likely your stop loss will get hit by useless market noise and even the spread of the bid and ask! Oops! 2. Overwhelmingly high losses Thinking that a small stop loss gives you small losses? Simply wrong logic. Because your small stop loss gets hit every time, you lose money every time. The losses accumulate, therefore, become very high. 3. Psychology of the trader will be in a bad state How do you feel when you lose 10 times in a row in trading? You feel irritated and sad, right? Of course! That is what happens when the number 2 reason takes place. Your trust in your trading system will plummet and irritate you. The irritation will affect your trading, therefore making your trades gut-based and emotion-based, a mortal sin of trading. Then you lose money. These reasons may give you enough evidence to still avoid small stop loss. But I bet, there are still many of you who strongly disagree, including trading "experts". But, I will give solid proof as to why. I used a backtest site called StockbackTest (which by the way is not a recommendation to use) to backtest a simple system that Shorts when the MA200 crosses above the price, and Longs when the MA200 crosses below the price. I will be showing the results of this simple system(which by the way is not a recommendation also) on AAPL 2 times from 2005 to 2015, with a profit take if profits are 10%, but the only difference is the stop loss is 0.2% and 5%. Check below: 0.2% Stop loss 48.1% win rate 16.1% return 5% stop loss 52.4% win rate 58.2% return Yikes! The 0.2% stop loss gave only 16.1% returns, very small compared to the 58.2% return of the 5% stop loss. This is not the only proof. Many famous traders like Jacob Bernstein also has performed backtests on small stop loss vs large stop loss. Here is a visual scenario of a small stop setup: Speaking about stop losses, how much should be your stop loss? Here are some basic guidelines: 1. It should be based on the volatility of the market Let's take an example: Futures X trades at $93 - $95. An appropriate stop loss would be at around $91.5, because you wouldn't be stopped out so easily, giving room for profits. Refer to the diagram below 2. Historical Price Support/Resistance A stop loss is more likely to do its job properly if we base it on support/resistance. The support/resistance can be a trendline, a Moving average, etc. Refer to the diagram below One last thing: Stop loss is not the only thing you need to know. You also need to you entry points, indicators, etc. Thank you for reading this lesson about stop losses! Make sure to like, follow for more. Thank you! :D :} :) :]
NASDAQ:AAPLEducation
by Trader_ph