How to be okay with taking a Stop Loss?

[Devin larrson]

I guess with stop loss one can always think it this way, that in a trade where they could have lost 50% of their money, they just managed to lose only 10% of it. As they say something is better than nothing.

Agreed buddy!
Stoploss is the best way to limit risk and protect a portion of existing profits in a trading position.

 

[LuckyMac]

The concept of the stop-out is simple. It's to protect capital.

When you place a trade you determine how much you're willing to risk that your play is correct... that's where you place your stop.

No other consideration is relevant.

KISS, baby.

like this lol it is all about probability so once you have a stop at a place where you are comfortable and you know you have backtested your strategy to make sure it works you should be fine.

 

[diabolique]

like this lol it is all about probability so once you have a stop at a place where you are comfortable and you know you have backtested your strategy to make sure it works you should be fine.

Yea agreed, having stop loss allow you to potentially minimize the losses rather than full out blown account when not accounting the SL

 

[earnforex]

like this lol it is all about probability so once you have a stop at a place where you are comfortable and you know you have backtested your strategy to make sure it works you should be fine.

Agreed buddy!
A stop loss prevents a major drawdown in your trading account if the market moves against your position.

 

[Raheel Shaikh]

At some point every trader has been through it,
call it revenge trading.

It has a lot to do with emotions and psychology.
Your ego and not wanting to have a red day in 15 days is what wipes out the green

every trader has been through.
We all love to have our journal look all green, but its not practical,
there's a saying cut your losses short and let your winners run.

you either walk away with 100$ loss or wait for your stops to do it for you,
have a solid trade plan on your losses and follow it.

 

[murray t turtle]

Great topic, I always hedge my bets by scaling out incrementally. That's a huge difference from how I used to trade when I first started which was all or nothing.

For example, my inverses all gapped up this morning in my favor, but I scaled in pre-market. As they dropped I scaled back out again incrementally in multiple positions.

The advantage of this approach is that you keep some of the shares alive in case there's a pivot back up in your favor, without having gotten shaken out of the entire position.

It's been a game-changer for me, always scaling in small and scaling back out small instead of rolling the dice on large initial positions taking large stops.

%%
Good, scale out + scale in. THAT also helps put ego in proper place.
Also big help , looking @ a loss as business expense\NO such thing as a business without expenses.
But plenty of businesses have gone broke with out of control expenses\losses.
Hope this helps/it helps me...............................................................................

 

[Overnight]

At some point every trader has been through it,
call it revenge trading.

It has a lot to do with emotions and psychology.
Your ego and not wanting to have a red day in 15 days is what wipes out the green

every trader has been through.
We all love to have our journal look all green, but its not practical,
there's a saying cut your losses short and let your winners run.

you either walk away with 100$ loss or wait for your stops to do it for you,
have a solid trade plan on your losses and follow it.

FALSE.

Just need the right music behind your mind.

 

[Bad_Badness]

On an additional note, with any system, knowing when to stop trading is so important. It is pretty easy to set an achievable goal and stop, the harder is:

• When to stop when you are negative.
• When to stop when you do not have an upside goal.

Both are doable but if you do not define the criteria, then the system is incomplete.

 

[Handle123]

"How to be okay with taking a Stop Loss?"

I think very best is developing a trading plan where you consistently profiting nearly everyday, after awhile you don't notice losses so much. But what is funny, in scalping I could have 70 scalps, don't remember any of the profitable trades but remember the 4 losses. You trade long enough, you wake up thinking it be a no loss day.

 

[deaddog]

after awhile you don't notice losses so much. But what is funny, in scalping I could have 70 scalps, don't remember any of the profitable trades but remember the 4 losses. You trade long enough, you wake up thinking it be a no loss day.

I don't really pay any attention to the losses I planned for. The ones I remember are the ones that I should have taken earlier.

I look at the account balance at the end of the week and review trades to make sure I followed my plan.