Always Set Your STOP LOSS

    Discussion this time is related to the previous discussion, about the cut loss. Arguably cut loss you do this is the manual brakes. Just unfortunately brakes manuals like these many drawbacks. Sometimes we still expect rates could bounce back. So when will do cut loss even hesitate. First trading forex, I even awed saw an increase and a drastic reduction in a currency. Instead of closing the position, but instead dumbfounded, "crazy, how can it be so" many traders also did not bear to click a button to his loss.

    For that you need an automatic brake, called Stop Loss. Its function is so that you do not plunge into the Valley a bankruptcy due to forex. Stop Loss will automatically close the position at pre-set prices.

Stop Loss is very useful. Other experiences, I open positions, deliberately not give Stop Loss because I will be watched constantly. Hearts happy because seeing a sudden Electrical URprofit.dan dead. hates it but what, last guns already profit, offing electric also live longer. The eagerly awaited the flame, yet ultimately I live sleep while dream gets a profit. The next day, it turns out that the price of the beerbalik direction, and profit into a freefall. Try before placing a Stop Loss. That's the importance of Stop Loss.

The following are some tips that you can do

in setting a Stop Loss:

1. always set Stop Loss every time you open a position.

2. when the Stop Loss is already installed, do not all times be tempted to remove the Stop Loss price in hopes of bouncing back.

3. If you do not set a Stop Loss, but then moves against currency and become a loss, make haste to do cut loss. This is to minimize the potential for loss.

4. There are two common ways used to set the value of the Stop Loss.

The first is to use how many points you dare to bear the loss. For example you open position buy EUR/USD at 1.4850. You only dare to bear 50 points, you can set a Stop Loss at 1.4800. Stop loss shows how many points that is ready to be sacrificed in a trade.

    

     The second option is you are using support and resistance levels to set a Stop Loss. Support and Resistance will be discussed further in the discussion of technical analysis.

    There is a belief among traders that forex trading, please just don't set an EXIT TARGET level, so you can let the position of the float (ride the profit). But for STOP LOSS law compulsory.