We want to discuss about the 7 biggest stop loss problems that can happen during
forex trading. If these problems still occur, then what must be done is fix them now. The concept of forex trading stop loss will also help you find a more effective strategy.
For novice traders, a stop loss strategy or also known as a stop placement is a concept where trading stops immediately as soon as you win or lose. It deserves to be said as the easiest order because you rely on logic alone.
Even though it's easy, in fact, it doesn't always have a significant effect. Even if you try again and again, the total profit can be no more than one trader using the strategy. Which do you prioritize over this condition?
If we were asked, then our answer would absolutely be concerned with effective trading. Best forex broker is also designed for every trader who relies more on strategy. However, if you still want to use a stop loss strategy, make sure the method is not arbitrary.
Do These Stop Loss Problems Still Happen When You Trade?
In the last point of the paragraph above, we mentioned that when trading with a stop loss, it must be effective and not done arbitrarily. To know which ones are arbitrary, then make sure that the errors that we will mention below do not happen to you:
1. Not Having a Stop Loss
The first mistake is not applying the stop loss itself. Stop Loss Problems can start with your own mistakes in understanding what a stop loss is. If you don't really understand the stop loss strategy, it's better to learn it first.
2. Make a Bad Sizing Position
Stop Loss is all about position. If you don't sell or buy at the right moment, then it's a fatal mistake. The essence of Stop Loss is about momentum, and you will be very lucky if you trade at the right moment.
3. Mental Stops don't work
Traders using a stop loss strategy need to be flexible. Mental stops that don't work in the stop loss strategy are at disadvantage. Losing the trade by failing to have enough mentality to make a decision is a loss.
4. Wrong Stop Loss Placement Sequence
Placement sequence we mean when entering the trade. It also relates to the risk exposure that traders expect. In many forex trading, you as a trader have the responsibility to control the trading sequence.
5. No Breathing Room
Even if you win, without a break, this is the same as amateur trading without a direction. This is even one of the biggest stop loss problems that still occur. The solution is to rest every certain period of time.
6. Make your Stop Loss Widen
You also should not make a wide stop loss because this is a fatal mistake. This stop loss must be done according to the directions, never be greedy, but the stop loss must be done with discipline and it can bring double profits.
7. Break-Even Stops and Make the Trailing Stop
Even though you have good intentions to give back your profit to the market, this is never the right way of trading. Stop loss problems often arise because of our desire to do something that has nothing to do with forex.
Seeing all the facts that make us often lose from forex trading, then the use of this stop loss should be trained again. The right place to practice is didimax forex broker. You will see for yourself how profitable it is if the stop loss method has developed later.
In the meantime, we suggest you pull out your money and study the stop loss in more detail first so that no mistakes will occur. If there are still the biggest stop loss problems on the
trading account, then it is a sign that you need another momentum wave.