Why should you have a stop loss. (at least a manual)
Euro / Australian Dollar FOREXCOM:EURAUD
Why should you have a stop loss?
There are many videos on Youtube and the likes and documentations that claimed stop loss doesn’t work, that your trade will hit the stop loss before going into your direction.
You’ve read about the “Stop loss hunting”, about the spread volatility that will take out your position (s).
Or even that the pair will come back, yes, it eventually comes back but this can take days, weeks or months! (Imagine if you sell/buy a pair that you have to pay a rollover fees, it can cost you a lot). And in many case it doesn’t come back ! Think USDJPY at 300, yikes.
Those recommending not having a stop loss are voicing their frustations, it’s understandable.
Have a stop loss, at least a manual stop loss.
The real reason beyong protecting your account from being wiped out is because you are not perfect. We are part of nature and we are constantly striving to perfection, (it implies that we are not perfect.)
Best wishes to all !