Stop Loss & Take Profit

[Bahiya Shinam]

Setting a stop loss is an integral part of successful trading. However I think it is ridiculous to set a stop loss of 10 pips because minor fluctuations can close our order. If we place a stop loss very near like 10 pips or 15 then a good order can be closed with a loss. I prefer to place a stop loss at least 30 pips away and usually place it from 30 to 80 pips depending upon the trading strategy.

A stop loss too close can lead to premature exits due to minor fluctuations. Placing a stop loss 30 to 80 pips away, depending on the strategy, allows for more room for price movement and reduces the likelihood of getting stopped out unnecessarily.

 

[Aaron_0]

Setting a stop loss is an integral part of successful trading. However I think it is ridiculous to set a stop loss of 10 pips because minor fluctuations can close our order. If we place a stop loss very near like 10 pips or 15 then a good order can be closed with a loss. I prefer to place a stop loss at least 30 pips away and usually place it from 30 to 80 pips depending upon the trading strategy.

You're right that setting a stop loss too close, like 10-15 pips, can result in being stopped out by minor fluctuations. A wider stop loss, such as 30 to 80 pips, provides more room for the trade to breathe and reduces the chances of being prematurely closed. It’s important to align your stop loss with your strategy, market volatility, and risk tolerance.