the experience of metatrader 4

What is the forex market?

Forex market is a very dynamic environment with various aspects that need to be considered by a trader in running his forex strategy. The many important things to watch sometimes make a trader forget things that (considered) small, but it turned out to have a big impact. One of the things often considered "small" is stop-loss, Stop-loss is actually an order placed to close open transactions in order to limit the risk of loss.

Positive and negative sides

No one wants to lose, but in trading you will not have to learn to face the risk. It was mentioned earlier that you can limit the risk of loss that you might suffer by placing a stop-loss.
The positive side of placing a stop-loss is that you do not have to keep looking at the price movement chart. Simply place the stop-loss level and your risk is self-limiting, without you needing to stare in front of your monitor. In fact - the extreme - you can shut down your computer and go shopping, play pool, or watch your favorite movies. Your risk is already limited by stop-loss.

The key to minimizing the possibility of stop-loss "licked" by price movements is the stop-loss placement technique itself. We recommend that you follow the signal in a time-frame that is not too short to avoid sudden price movements. Place your stop-loss several pips above the key resistance (if your position is sell) or under key support (if your position is buy).
stop-loss is the most easy forex strategy but it has a very significant impact in your efforts to limit risk. It is true that there are other means such as switching or averaging, but all of them have side effects in the form of a much bigger psychological burden.

Although it is easy unfortunately many traders who "fail" use it, whether it is to limit the risk and lock in profits. You should treat stop-loss like an insurance premium, where you never expect to use it but when the risk occurs, you stay calm because you know you already have a security.