Why Stop Losses Don't Work? | Trading Forex without a Stop Loss




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46 Comments

  • Nick Gadz

    January 16, 2020 - 7:28 pm

    I think stop loss is recommended when you are trading long but during scalping stop loss is not applicable. Due if no stop loss in long tendency when heavy reversal occurs ang your position sizing is huge based on experiences its very dangerous. Potential to blow the whole account….

  • Hassy3005

    January 16, 2020 - 7:28 pm

    Stop loss is a wildwest party for banks, they definitely will hunt to get you stopped out. Starting with a price action move you won't need a stop loss.

  • Niall Cochrane

    January 16, 2020 - 7:28 pm

    I don't use SL or TP

  • Mueez rao

    January 16, 2020 - 7:28 pm

    That's why ecn brokers are the best

  • Dustin

    January 16, 2020 - 7:28 pm

    As I started the video I was thinking about things I was going to add as I don't use a stop loss, but you nailed it. To further stress what was said, smaller position sizes do wonders. Another great example is maybe you didnt get the entry just right, but are right on the call, a smaller position size will allow you to add another position to help you exit the trade break even or in profit. I rarely lose money on bad entries because of this, BUT it's important to be able to see the difference in a bad entry or a bad call or losses can definitely pile up. Glad I stumbled onto your channel!

  • Josh Tony

    January 16, 2020 - 7:28 pm

    I wonder WHY traders or trader wannabes use moronic leverage on $100 accounts because they want to get rich quick! Trading isnt a get rich quick scheme. It should be treated as another income stream. With strategies that have an edge coupled with sensible position sizing and risk management, stops will not be run over that frequently. My advice is never get into a trade without stop loss unless you want to babysit the trade or use a percentage of your account balance as stops. BTW, been trading successfully for 13yrs. Nice video Nick.

  • Long Lost Puss

    January 16, 2020 - 7:28 pm

    If you've done your homework properly, you shouldn't need to use stops, your trade need a wide berth to play out, so it's more a case of recognising how many pips a trade retraces before going in your favour rather than it going against you because your entry is totally wrong.

    Stops are deliberately hunted and I've lost nearly every trade using them versus not using them and nearly winning all my trades.

    More emphasis should be put of risk size and margin.

  • cheesy jube

    January 16, 2020 - 7:28 pm

    Until you have experienced a black swan you will not believe in hard stops.
    Also if your stop are hit frequently, your entries are off.

  • AgainRobin

    January 16, 2020 - 7:28 pm

    My friend shorted GBP last thursday with a SL didnt really work …. margin call😂😂😂

  • Ak Uzzal

    January 16, 2020 - 7:28 pm

    How trade without stoploss .
    How much need money for this

  • BugsyBalone

    January 16, 2020 - 7:28 pm

    XD

  • Runako Ali

    January 16, 2020 - 7:28 pm

    WOW ! Eye Opener with the "No Guaranteed Stop Losses", didn't know this. Always taught all brokers were responsible for ensuring trade exits at designated SL.

  • Nature lover

    January 16, 2020 - 7:28 pm

    Hi do you offer copy trade and EA

  • Senura Senaweera

    January 16, 2020 - 7:28 pm

    It depends on your risk per trade, if you trade small lots a stop loss is not necessary because a huge swing in the opposite direction will not kill your account. If you trade large lots then you need one cause you can get wiped out.

  • Anil Sutar

    January 16, 2020 - 7:28 pm

    Bro….Love from India..❤️🤗

  • Keno Clayton

    January 16, 2020 - 7:28 pm

    I prefer a wide stop loss based on higher timeframe structures just to prevent a black market event from taking my account with it.

  • Colin Wong

    January 16, 2020 - 7:28 pm

    I settled with nursing trades with multiple small lots with an invalidity line instead of auto stops. So the next small lot entry must be better priced than the last. Therefore I have a dynamic average price level to break even (targetting Fibo retracement levels). Anything over and above the BE will bring profit to my project in totality (and hence preservation of my AC sizing). However, I avoided certain pairs especially gold, GBP, Oil as these movements can be big. Similarly in the opposite of a drawdown, if I have a positive running trade, I use positive hedging (lot for lot) at R&S to lock in the profit instead of giving back to the market during retracement. I therefore have an option to add on more entries at fibo retracement turnaround or if the trade gets too complex (too noisy with Trumph's tweets etc) I'll just close the project to pocket my already guaranteed profits. Some pairs gives clarity in movements eg. CADCHF, CHFJPY, AUDCAD, AUDNZD instead of noisy pairs with USD, GBP & EUR. So once i focus on these pairs, I can follow their rhythm and ranges where they will likely turnaround. Therefore when my closed trade shows a loss, this loss will not erode my AC size because, I have another trade(s) that I simultaneously closed that has a profit bigger than the loss (due to dollar averaging) as I have nursed it back to BE or profit instead of closing as a stop loss trade that will erode my AC size. Hope I make some sense here.

  • InfamouS Rider

    January 16, 2020 - 7:28 pm

    Stop losses are Scary.

  • Rasheen Taylor

    January 16, 2020 - 7:28 pm

    I personally don’t use a stop. I have better results that way. I watch my trades from start to finish and that’s how I manage my risk. Whenever I used a stop loss listening to everyone else I blew every account

  • robert brown

    January 16, 2020 - 7:28 pm

    ur crazy if u dont use stop losses..

  • Gero O

    January 16, 2020 - 7:28 pm

    It is also possible to use an EA, a so called Equiy Manager. It allows to set a TP an SL in percent of he Account, but the trading software must run all the Time on the Computer.

  • Goku supersaiya

    January 16, 2020 - 7:28 pm

    im use stop profit

  • David Dates

    January 16, 2020 - 7:28 pm

    Traders who don’t use stops will hedge and still use a hard stop at a certain level

  • Peter Eastman

    January 16, 2020 - 7:28 pm

    I believe that brokers do "stop loss hunting." I have been hunted.

  • Ryan Yahya

    January 16, 2020 - 7:28 pm

    Thankyou nick

  • MPlain

    January 16, 2020 - 7:28 pm

    i don't tell my broker what it is. they can see it…so i won't let them stop hunt me. i tell my bot when to run. 20 to 30 pips is about right. depends on your loss tolerance. gives the market room. i get why people don't use them. i totally get it if the trend is going one way and you are trading that way and nothing is saying reversal. in that situation what happens today that goes against you is probably nothing and you will get it right back the next day. i tend to swing trade more then day trade these days so this changes my tolerances and over all outlook a bit.

  • Kamohelo Lekeba

    January 16, 2020 - 7:28 pm

    Nick I agree with your
    point 100%. My view is, I get into trading with the view or mindset that this is operating a business, you don't go into a business and stop yourself out when things get difficult. You manage the difficult period through it. A business therefore is stopped out when it reaches solvency.

    Your views of stop loss it to get out of a position that is not working, but in what sense? 1hr or 4hr or 1day, to me that's not prudent, that's not wise and that's not doing anything sofisticated.

    The only thing about stops is every Big Smart Trader knows where people "the masses" AKA Zombies put their stops. Ask any Floor Trader about this. They use this stop loss thing as a cash machine. And you, you think you are smart when you use Stops. To me this is the most unsophisticated thing in the world.

    Basic understanding of MMT, the OCO principle and economics is all it takes to risk manage your account. Just spend a lot of time honing in on the right information before any trade and watch the masses react to that….!!

    Kamohelo Lekeba

  • Boomerang Boomerang

    January 16, 2020 - 7:28 pm

    Obviously depend on what strategy we’re using, for me I’m not a fan of stop losses, there outside there’re different ways instead of stop losses, which personally I much better prefer. Thanks for the videos Nick, you’re part of YouTube well trading education!

  • Future Wei

    January 16, 2020 - 7:28 pm

    good share

  • Zulqarnain Orakzai

    January 16, 2020 - 7:28 pm

    very very informative, thanks

  • Aljaž Jesen

    January 16, 2020 - 7:28 pm

    Depends on the trader, in my case sometimes it was good bcuz it didnt stop my trade and then go in the direction i wanted, but bad bcuz it blew my account also.. So i set up my SL just big enough for the market to breathe

  • Kamohelo Lekeba

    January 16, 2020 - 7:28 pm

    If you consider trading as a business, then the principle is you are in business to make money NOT to loose money.

    My point is STOP using "stop loss" as a means to limit risk or to put it bluntly stop using stop losses in your trading business, (stop loss concept give you a false sense of security) rather use small position size ( don't over commit your account) as a means to risk manage your account, period….!!

    My tip is ….. it is technically and fundamentally important to spend more time in analysing the market you want to trade before you can even trade.

  • Sharn Simmonds

    January 16, 2020 - 7:28 pm

    I enter trades with out Stop loses , when in profit I modify trade with SL in profit

  • Ahtisham Tariq

    January 16, 2020 - 7:28 pm

    Hey Nick, I am totally against stop losses, I make 120 percent last month

  • Giovanni Calì

    January 16, 2020 - 7:28 pm

    I agree that knowledge should never be dogmatic, and this is one of the things I dislike about the industry, but I can't see how not using stop losses can be profitable in the long term. You mentioned the EURCHF disaster, but that example doesn't really help your case: it is true that, if you were using a stop loss, you would've been filled way below your intended price, but if you weren't using a stop loss you would have probably lost your entire account. What if you're in a trade and the next flash crash happens? Even when using a tiny position size, something like the EURCHF fall would eat way at least 30% of your entire trading account.

    Thankfully, us Europeans have regulations about negative balance protection, meaning that we cannot owe money to our brokers if we lose all the money in our accounts.

  • Bradley S Davis

    January 16, 2020 - 7:28 pm

    A stop loss will not work for you on 9/10 (short-term) strategies. After years of tinkering Iv'e found the most effective stop is a hard equity stop. i.e. if your trades in total hit a negative equity level of XX% , close all trades. You can set the level to what you feel comfortable with, I personally use 20%. I know to the £100 (on a £10k account) how much I'm going to loose if my combined trades turn against me. I have 20% in reserve to top up and carry on.

    100% agree on the small trades Nick. Greed will always, ALWAYS kill your account no matter how smart you think you are.

  • Trading Experiments

    January 16, 2020 - 7:28 pm

    Great Video Nick! I agree Hard Stop Loss isn't always the best approach.

  • Zillionaires Club

    January 16, 2020 - 7:28 pm

    stop loss to be or not to be, that is a question, William Shakespeare 🙂

  • gharib sol

    January 16, 2020 - 7:28 pm

    thank u Nick for yr videos and good luck

  • Harry Krish

    January 16, 2020 - 7:28 pm

    Hey Dear TraderNick –> "Why dont you do Daily or Weekly Market analysis ?"

  • Alan

    January 16, 2020 - 7:28 pm

    When you said trade with 0.01 lots as an example to manage your risk with a small position size, what size account would you recommend for this small position size ? $10,000 or $50,000 ? generally speaking, can you give some examples please of small position sizes relative to the account, ? thanks brother…

  • Harry Krish

    January 16, 2020 - 7:28 pm

    Yes Swiss Market on 2015 when Brexit first introduced to the market , market is BOOOOOOOOOOOM , i never saw such move in my like , i know i was there at that time i dont have much knowledge on Technical as well as fundamental analysis !

  • Monika Krall

    January 16, 2020 - 7:28 pm

    Is there an authority to whom report companies who breach data protection and they somehow got my phone number, my email without me giving it to them, also they harrassed me by phone, by email several times after I expressed no interest in them on the phone. This company is the UFX company. I put them in spam, blocked their phone number. I have seen others complaining about them.

  • takunda hove

    January 16, 2020 - 7:28 pm

    Ts true nick I usually avoid stop losses when major impact news are bout to be announced if and when am already in the trade….

  • Aadi Skywalker

    January 16, 2020 - 7:28 pm

    Forex experts commenting on stop losses incoming 😂

  • AHmett Ali

    January 16, 2020 - 7:28 pm

    First 😍

Comments are closed.