Why Are Stop Losses Key and What Can We Do?

3 min read

Hi Trader,

Tarantula and Chris took 2 swing trades yesterday (31 May).

Nenad entered a GBP/JPY short and Chris a EUR/AUD short.

Both entries were based on our ecs.SWAT system.

The GBP/JPY and EUR/AUD setups ended up closing for +115 pips and +95 pips on the 1st of June.

Hidden behind these statistics, however, was a dramatic sequence of events….

Perfect SL thriller

So the entry was made… swing setups.

Of course, a drawdown is common especially a swing trade which is taken over night.

The drawdown did indeed occur…

And came very close to taking out our Stop Loss:

2016-06-01_SL

But both trades did survive.

Partly it was pure luck…

But can we learn something besides that?

Yes, we can! 🙂

Learning from Details

First of all, Tarantula and Chris trade with Admiral Markets – 2015 winner of the best MT4 UK award.

Do not underestimate the importance of trading with an award winning broker.

Secondly… We used key Pivot Point levels to provide extra confluence.

2016-06-01_sL 2

Without the above two factors… our trades would have turned into a loss…

These 2 simple tips helped these trades turn into WINS.

The difference between +115 and +95 for a total of +210 pips or a loss of -95 pips is huge.

Both for the trading account and the psychology.

GJ short (3) 2016-06-01_EA

We hope that this extra quick info helps with future stop loss placement!

Live trades & webinars, free 2 week trials, free Forex stuff at Elite CurrenSea.

Video of same post:

WARNING: Trading on the financial markets, including Forex, is high risk. Your losses can exceed your deposits. All pages, information, articles, and content on this website is for informational and educational purposes ONLY. 

Twitter: @elitecurrensea

Youtube: Elite CurrenSEA

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