Category: 4. Setting Stop Losses

Setting Stops

Well there you have it… BabyPips.com’s awesome primer to setting stop losses. Now let’s review the things you need to remember about stop losses. Find a broker that allows you to trade position sizes that suits the size of your capital and risk management rules.We use the word “predetermined” a...
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4 Big Mistakes Traders Make When Setting Stops

Let’s talk about the four biggest mistakes traders make when using stop losses. We always stress using proper risk management but when used incorrectly, it could lead to more losses than wins. And you don’t want that, do ya? 1. Placing stops too dang tight. They’re so tight that there ain’t no...
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How To Set A Stop Loss Based On A Time Limit

Time stops are stops you set based on a predetermined time in a trade. It could be a set time (open limit time of hours, days, weeks, etc.), only trade during specific trading sessions, the market’s open or active hours, etc. For instance, let’s say you are an intraday trader and you’ve...
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How To Set A Stop Loss Based On Price Volatility

To put it in simple terms, volatility is the amount a market can potentially move over a given time. Knowing how much a currency pair tends to move can help you set the correct stop loss levels and avoid being prematurely taken out of a trade on random fluctuations of price.For...
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How To Set A Stop Loss Based On A Percentage Of Your Account

Let’s start off with the most basic type of stop: the percentage-based stop loss. The percentage-based stop uses a predetermined portion of the trader’s account. For example,  “2% of the account” is what a trader is willing to risk on a trade. The percentage risk can vary from trader to trader. More aggressive...
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What is a Stop Loss?

Managing and preserving your trading capital is your most important job as a trader. If you lose all of your trading capital, there is no way you can make back the lost amount, you’re out of the trading game. If you make pips, you got to be able to keep...
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