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How to trade forex without using stoploss

Forex Trading Without Stoploss
If you are new to forex and you do not want to use stoploss, congratulations because you are a normal person! It's really hard to accept stoploss at the start, because stoploss is a sureloss. It has been debated many times by different traders, whether to use stoploss or not.

 The only advantages of using a stoploss is it will prevent your account from further loss that could result to a margin call if not wiping out your whole account. But what if, when the stoploss was hit and the market started to go back to your direction? For sure, you will regret closing the position.

 To trade without using a stoploss, we should enter the lowest posible lot for trade, so that when the market goes back to its direction after giving too much volatility, our entered position are still there. 

 If you have these qualities you can trade without using a stoploss

  1. Not Greedy - entering a lowest possible lot will give few profits, but it will also give small negative floating profit if we are wrong on our analysis. 
  2. Patience - Floating position can last up to several days, weeks or months before it can show some profit. 
  3. Discipline - If we have a rule that we will only enter 1 position at a time, we should follow our rules, or else we will result from overtrading because the prevoius position are still open and waiting to become positive.

Trading without stoploss are not recommended for newbie traders because of lack of those qualities. Before we think of profit in forex, we should think first how we can sustain the volatility of market and one of the best way to do that is to enter the lowest possible lot.
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Comments

  1. AnonymousMay 24, 2013 at 1:01 PM

    A note of caution... Depending on: (a) the currency pair being traded, (b) its swap (rollover) rate, and (c) the direction of the trade (buy or sell); "several days, weeks or months" of holding the open trade may result in cumulative swap fees that exceed the trade's profit.

    ReplyDelete
  2. myoptionsAugust 30, 2015 at 5:55 PM

    Again, above comment ignores RISK! Many traders simply risk too much.

    ReplyDelete

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