Should you use a stop loss?

Take the emotion out of your trading with the one click stop loss. No need to mess around and set anything in advance. Just use the one click stop to automatically cut you out if you position moves…

I am not so sure myself about whether a stop loss is good for everyone. If you set it wrong then you are saying yes I want to lose some money. The market can swing in the wrong direction hit the stop loss then motor off in the right direction. The trick is to not put the stop loss so close to the price you are starting at and the second part of the trick is to let the profits run.

So you want a small stop loss but not too close so that you lose too easily and a get out price high enough that you make more money on the times that you win.

A good thing to watch out for is when the price rises and you can put in a stop loss that will cost you nothing. the price rises and you want to let it run but at the same time be protected if it then goes the other way. Nice when that happens.

I would suggest a ratio of 3 to 10 so that when you lose you lose say 3 euro but when you win you have 10 Euro. That should work well. Many use a strategy like that when working with Forex.

What do you think? What has worked well for you?