People are often misled and misguided of use of Forex Trading, However, Sometimes it’s better to look at it in all kinds of ways, from beginners to professional opinions, and weigh your options to take decisions thereof.
But, Let me enlighten you on something.
If you’d decide to go somewhere anywhere, in the car, you are required to put on a safety belt, why? You don’t do it so you won’t get a ticket, or do you? – You do so, to protect yourself from unpreventable situations.
Each and every single company practice the safety of the employers and employees. Even the most dangerous weapons have safety buttons. Your accounts have passwords to protect you from phishing and scams.
Thus, Stop-Loss in Forex trading is your safety button – you can decide that when Trading with $100 if losses go below $50, you accept defeat.
It may happen many times that it might go a little bit below $50 before it picks up real quick with a lot of profit but that might be stooped by your stop-loss conditions, that’s one of the cons.
However Forex – needs consistency and follow your ways, your analysis, your stop-loss conditions, win or loss-making sure your losses aren’t bigger than your winnings – otherwise, there won’t be any progress.
My opinion – which is also a professional opinion from a number of professional traders is USE A STOP-LOSS. You are not a fool by doing such, you care about your investments – and when you have lost in a movement, and your trading time frame elapses, don’t trade.
Hence, making it one day at a time. Sometimes, there will be moments of luck, but stay consistent, ‘long as your strategy works – don’t be greedy – you might lose most of your money if not all. Use a Stop-Loss, Most Beginners Don’t use it, and if you’d see, even Professional Traders use it.