How to Determine Stop Loss

Stop loss by meaning is stop-loss. In forex trading, the stop loss term is to close the position being lost at a certain level because we expect that if the position is not closed then the losses will be more.

So to menutu p positions that we must ensure that market conditions will actually go far contrary to our position.

There are several ways to determine the stop loss level is based on the strategy:

1. Stop loss on a blind trading

blind trading is the trading that focuses on money management, so often the entry point, exit point, the target profit included a stop loss at blin negotiation is not the result analysis but because of mathematical calculations a trading strategy

example: open .. buy a 5% when prize open the newly formed, a target profit of 10 points, stop loss 10 points

in the above example a blind trader does not require an analysis to determine the operation stop loss .Because so lost he would do the next strategy.

2. Stop loss on actual trade.

Trading is correct is membeuka position is always preceded by an analysis. In this type of trading stoploss determined in 2 ways:

A. The use of indicators

is often used as a level stop loss is the Parabolic SAR. The rules are open to his position with a stop loss is the value paabolic SAR at the time.

B. Use Helpline or resistance

The support or resistance is a price level which usually go at a point reflects the market. While we can put a stop loss position behind support and resistance lines with asusmsi this level, it would not terentuh because the market will rebound before the stop loss level.

If the support and resistance lines successfully penetrated the prices will continue, so it's okay if we put the stop loss behind support and resistance lines.

C. Using trend lines

trend line could also be used as stop loss level on the grounds that was not on the longer trend line will always be in front of the trend line. So if the chart to cross the trend line, we can be sure that the price will continue to move away against our position.

This some how determines the stop loss that can be used in our business, which must be is considered that there should be some distance between the stop loss level to that used as a basis for determining the stop loss level to not occur on the market touches the stop loss and management the reverse market.

We teach them how to determine the best stoploss and takeprofit in exchange training so that when the loss is low and the profit is considerable.

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