How big of a stop loss should I use?

Hello, I'd like to know how big of a stop-loss I should use and where I should put it? I trade mostly EUR/USD.

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  1. Profile photo of PipHut Team
    PipHut Team
    May 11, 2010 at 04:39 Reply

    It depends on your strategy and the particular trade setup, but I on average use a 50 pip stop-loss on the EUR/USD, and I generally trade off of the 1h and 4h timeframes. I don’t usually go below 30 pips and stay below 75 pips for 4h timeframes. For daily charts I will use 100-150 pip stop.

    As far as where to put it for my trading strategy I put my stop-losses behind a major support/resistance area, or an area where the trend would be changing if it were hit.

    Lets say for example my analysis determines the trend is bearish below 1.3500. I’d then look for a trade where I can hide my stop-loss above 1.3500 and get a good risk/reward ratio (at least 2:1, preferably 3:1).

  2. godfrey
    May 21, 2010 at 20:01 Reply

    thanks mark for the advice.happy weekend

  3. Emmanuel(Nigeria)
    July 26, 2010 at 10:23 Reply

    This is great I have learn something invaluable today. Thanks and God bless

  4. Profile photo of anastasia makoni
    anastasia makoni
    January 3, 2011 at 10:58 Reply

    that sound good

  5. Fred
    March 14, 2011 at 11:43 Reply

    I have recently learned the hard way and got stopped out prematurely, i placed the stop to close not considering the daily range of the currency pair and the Support and Resistance. Will definitely do so in future. Thanks

  6. Profile photo of REMORA
    REMORA
    July 5, 2011 at 14:06 Reply

    Mark, thank you for leading the way .

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