“Give the market time to prove you right” – is the main message of this video. Traders often manage to predict the market but don’t have the patience or the technical skills to place their stop loss at the right level. David gives the three most vital tips for placing stop loss levels and the challenges that traders have at the different points of the decision making process.
This is both a technical and psychological skill that involves different components. Deciding whether to have tight stop loss level when the position is opened, determining whether it has to be placed by looking at the value of the potential loss are all discussed by David as he walks you through a real example with the EUR/USD.
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awesome clarity, thanks david jones
Thank you dave you very helpfully. Learned so much from your videos.
What program are you using?
Hi Chris, the trading app David uses in the videos is Trading 212. You can open a free Practice Account within seconds at http://www.trading212.com/en/Free-FOREX-Practice-Account-GBP.
Hi can we try to learn trade cryptocurrency on demo account? Because im unable to do so as its showing “ maximum quantity for longterm position in this instrument is 0”
Plz help
Hi Nadeem, this message means that opening new long positions with the instrument in question was temporarily disabled.
Good info but Mr Jones does not respond to any questions. Very disappointing. Did I miss someting? How much of my position do I sell at the chosen stop loss price – 100%, 80%? Sort of important dude, but sort overlooked.
Hi, what indicator would you recommend to setup top looses?
None – if you mean stop losses then I would be looking at levels on the chart.
I’m just wondering why you set a stop loss above the highs? I’m very new to trading lol i always thought the stop loss was below the current price?
Thanks
The stop loss can be above the current price when you enter a short position, i.e. one that would be profitable if the price went down. Here’s a bit more about that https://youtu.be/5-1LYR3eeNw
Explained it perfectly! Thanks!
You have the gift of teaching. Thanks for posting these videos!
thanks this is valuable information for a beginner ! big help thank you!
Hi Dave. I have recently come across your videos. Watched a few. Enjoyed them all. I have just finished watching your stop loss video. You set your stop loss away 60 points. What would normally be your ratio to take profit. Thx Tonino
Hi Toni, ideally looking for somewhere around 2.5/3 x that as a target. When the market has moved 60 points in my favour, I would move the stop to break even and start to trail it.
When the stop loss is triggered but the asset is going up right after, how do you decide if you buy back or if you wait and hope for it to go back down to minimize potential loss?
Hi, for me if the stop loss is triggered it means a major support has been broken. So, I would want to sit back and see how the price action unfolds for a while to re-asses.
martramT As David said, take your time and re-assess the market before re entering
Wait for resistance levels to be broken again, breakout patterns etc..
Great vids! Do you have Bitcoin or Litecoin address I can tip you with?
I only accept used 100 dollar bills unfortunately.
Thanks David. You have a very trust worthy look about you.
Great Videos, one question, what time frame do you usually enter the trade at, 15 min, 30 min, 1 hr, etc. really like watching and learning
Hi, dailies and hourlies for me. I think it is too easy to get sucked into the very short term and miss the big picture.
I usually never set my stop loss more than 35 pips away. But i also dont buy or sell too early. I wait to snipe that thing out of the sky lol
Great videos.. Very pleased I found this Channel. Thanks
Thank you, David, I have learnt something new from your video. Could you please advise which trading platform are you using in the video? I am using MT4 on both demo and real account I cannot not have a order ticket like you. Instead, as you probably know how MT4 works with placing order or to open a position. I hope you can help. Thanks
Thanks! Perfectly explained again!
Hi very informative. Thanks a lot. I am planning to come back to trading after a not so very successful period last year! any advice on brokers?
Hi Shashank, you may take a look at Trading 212. Free Practice Money Mode at http://www.trading212.com/en/Free-FOREX-Practice-Account-GBP.
Thanks , I have learn from your video that one should decide the stop loss and place it first.
I will try with my next order.
I am quite new and learnt by my own mistakes that when I buy or sell by market and adjust the stop loss or profit afterward my orders always have been filled. However, when I put an order by pending order often they are not filled and I don’t even know if they are filled, how do I find out at the initial state instead of waiting and waiting and don’t understand why when the profit target is reached, but I don’t get credited and my order keeps on topping up. It does not cost me of course. I have taking courses, but I don’t think I can do like what I think I should be doing.
Hi Chalao, you may want to follow this link for details about the different types of pending orders on Trading 212 and their execution – http://www.trading212.com/en/Frequently-asked-questions?cId=5. The trading app notifies the trader, once a pending order has been executed. Start a chat now for more information and other questions – http://www.trading212.com/en/Contact?startchat.
Hi David< thanks a lot. However the software docent allow to be re adjusted while trading gold/oil etc. Any advice on that? Thanks again
Hi What i meant was the software decides on the stop losses in gold and oil. We cant adjust the stop loss as David is advising in this video. I have spoken to one of your advisors and they said as the oil and the gold market are very volatile we as traders are not allowed to adjust stop losses. Any advice?
The Stop Loss orders’ execution is guaranteed during market hours. That is why a requirement for a minimum distance from the current relevant price is introduced. It aims to avoid a premature order execution, due to a slight price movement. You may read about the different types of pending orders on Trading 212 and their execution at http://www.trading212.com/en/Frequently-asked-questions?cId=5. Feel free to start a chat in case of other questions – http://www.trading212.com/en/Contact?startchat.
By doing that you have taken control of losing less money by the trader. Is that why you don’t charge us as you will get commision if we lose by a big margin?
You say in your video to give breathing space to trade, but that should be our decision. In this case, if we lose we lose big
Because we cant adjust the stop loss to a minimum!!
how do you compare setting the stop loss at an actual point on the chart vs. as in a previous class limiting your loss to 1% to 3%? Is it possible that the stop loss set on the chart may exceed your 1% to 3% threshold?
Hi David, I’m a new trader on Demo, still struggle to place an order,need a simple guide in this.Thanks for your tutorial videos.
Hi there, you may watch this tutorial on how to place a position on Trading 212 – https://youtu.be/LKLHDg-bvfs.
great advice David!
Very helpful and supportive video!
Hi, may i ask what software did you use to do the analysis in the video?
Hello Zifan, the trading app is Trading 212. Start trading now with virtual money and for free at http://www.trading212.com/en/Open-Practice-Account-GBP.
You gave me strength and wisdom. That’s a great lesson, I was scared of loosing
My trades are getting demolished because my stop losses are so tight…
This video is Not good advice. ONLY the trader knows how much he/she can afford to lose.
I don’t have stop losses yet, just Cus some of my stocks are so volatile, they move up and down 10% in a day.
Thanks David. Your videos are the best in whole internet universe!
I am new can anyone tell wether it could be 100% or more or it should be 20-40%..
I wish I saw this video earlier. great video expert advice
stop loss its a brokers money
Thank you
I like the way this guy explains and break it down. Very simple and understanding. Thanks
Professional videos you people make!
Do look at the Bid and Ask price to determine your stop-loss?
What site do you use
It is Trading 212 – http://www.trading212.com/en/Practice-for-Free-GBP. Try it out for free with virtual money.
Do u people sell any course, or u people doing it for free???
Hi Vikash, all educational materials provided by Trading 212 are offered for free.
@Trading 212, then make a video about intraday trading strategy. Will u?
Great video, thanks for the advice.
There is a common mistake that all new traders make. They trade with fixed LOT size where the loss varies in every trade.
They fail to understand how important it is to trade with percentage per trade where the loss would be the same for every trade, however the LOT size will vary depending on where the stop loss is.
Before entering a trade you want to know exactly how much you will lose if the trade goes against you
You are a really nice man Mr. David. And thank you so much for the information.
why is it you have a different interface than the one I use in the practice mode? you have a black background, I have white and how the screen is arranged is different. I am using trading 212 as well.. I need help please..thank you
I am still trying to learn everything before I start trading real money. Thank you in advance
Hey Adrian, we constantly tweak the interface and design to provide a superior trading experience. The app offers a light and a dark theme, so you may choose your preferred one.
How do trailing stop losses work?
Hi there, we have a nice tutorial explaining how the Trailing Stop works, so make sure to watch it – https://youtu.be/-4dIZPhm0uo
Put simply, the Trailing Stop order places a Stop Loss at a certain distance away from the instrument’s current market price and follows the market’s movement. If the market moves in the desired direction, the Trailing Stop automatically follows the price of the instrument at the set distance. If the market moves in the opposite direction, then the Trailing Stop remains stationary.
Thank you
This is valid only with big accounts…
Hi
Yup blew all my money aswell I’ve come to the conclusion that I just have to work a fuckn 9 to 5 just to live fuck luck lotto and all that other shit fuck it all just go to work that gets me bread and butter it’s the only thing that works for me
this is amazing!
thanx David
What platform is that,you’re using
Hey Alex, David is using the Trading 212 web app to trade. You can find out more and open a free practice account here – https://www.trading212.com/en/Practice-for-Free-GBP
Give it a wiggle room.
That’s the take home from this video.
.
Thanks for the advice!
Hey David, very nice Videos!
Could you tell us which software you are using?
Love your teachings. Keep up the great work! Also thank you for making your videos in caption! Why? Cuz I am deaf. Really appreciate it when videos are captioned.
How do you calculate the stop loss percentage before entering it? I know you said 1-3 percent.. but how do I calculate that with what I’m buying or selling?
Just find 1 – 3% of your investing money and multiply with your volume and you will find the pip number. Put it on the stop-loss section when ordering. Buying or selling doesn’t matter. You could lose money either way.
I dont know how to figure out stop loss with XAUUSD. cannot figure how, where will be 40 pips or 60 pips. Wondering shall I consider the number after the .Dot or before it. Its confusing for me these kind of pairs.
Using a stop loss is like using a seat belt. Everybody who thinks it’s useless, will end up paying for it badly when things go wrong.
Thanks for this wonderful videos
They’re no good at all when it comes to intermarket bank closes and “rollover” periods. Lost 2 trades because stop loss didn’t work when the spreads went haywire
hello very good video that short video I learn a lot about stop loss im new to trading I been learning to apply stop loses to my trades
Stop loss trail my favorite
It’s good tip. However if you put your Stop Loss at a further off position, your risk return could be twice or more times than your “tp, take profit”. In occasions due to unforeseen news or events of a daily nature, your Stop Loss will be hit. 3 red candles going straight down can be quite common. You can have 2-3 orders a day like that. On 3 orders, each being $10,000 you could lose $60,000. What’s the best method for that? Your views would be valued.
What happens if i cancel an ongoing trade if i see i am losing money? or the market is not going my way?
That SL was suicidal!
what program were you using during the video?
Can you please show this on mobile app because a lot of people nowadays are using mobile app the computer application is different also can you show us the stop limit on Investment account please
I set a 5% P and 95% SL. Is that ok?
IM CONFUSED! For example, if you have an account with £1000 balance, and you risk 2% of your account for a trade, which is £20 and you use a lot size of 0.02 (which is 20p per pip movement. If you have a stop loss which is more than 100 pips, and you hit your stop loss, then surely you would be losing more than £20. So you are losing more than your 2% are you not?
Today I placed what I thought was a limit price loss @$6.60 the price was $7.00 at the time I clicked enter. Next thing I see is your order executed $6.75 . I cant figure it out
Too much lengthy talks. Straight to the point instead for better understanding.
6:17 what software are you using on your mt4 to calculate the stop loss cost?
He ain’t using MT4, he is using the Trading 212 platform itself.
Sir i can read charts now..80+ percent time my predictions go right… But i keep Stoploss very tight because of fear.. Stocks go according to my predictions but after hitting Stoploss.. i get very frustrated at that time.. Even my chart reading is good still i lose money.. Actually i can’t select area of stoploss… I can’t calculate as per volatility.. can you help me in this matter??
Usually like mid entry price/previous support or resistance
if you put stop loss and the price hits it before you get you bid in will it become a short?
Is it a good idea (on mid- to lage-cap stocks) to put your stop loss a cent under support (, or when you’re shorting a cent above resistance). Because that’s where a lot of reversal happens, traders will for example buy as soon as it hit’s a certain support. So if you are just under that support and your wrong and it breaks, you’re out but lost bearly anything extra than if you put it at support. And when your right and the market turns around you’re still in. So is it a good idea?
Edit: Grammar
if i am buying then my SL should be below the entry point and if i am selling the SL should be above the entry point is that correct?
Very very helpful video
Thank for your help this is great information
I have learned more from you in the last month than the last year. Thank you.
How comes when I right click on the detailed trade box, the format looks nothing like the one on your screen?
You explain things so well, I’ve just started and already I’m learning lots from your videos. Thanks
Thank David, you are so clear. Great explanation and tips. Greetings from Argentina. Keep rocking!
What if the price falls below your stop loss during after hours? Does it trigger it at open or does the market open where it closes?
If I see it goes below my stop loss during after hours should I sell during after hours or am I screwed?
Hi there, I am new trader on Trading 212. I have not taken any course etc. Could you please make a video which should explain. How to buy, sell shares. You may include some precaution like set take profit and stop loss as well. It will very helpful for the new starter. When you show demo please use simple examples like small amount of share which could be understandable for the new starter. Like what is 10% of 100. Which 10%. It will clear the concept for new trader. I will wait for your response.
Nice advise mate
hi plz talk more about financial risk
thank you so much
Should I do that if I am long term investor?
How to place a stoploss when you want to be in the trade for two weeks?
Thanks David man
So it’s best to set the SL price a little further past the trigger amount?
Would you talk about hedging please. Thank you
Great video. Everyone who watch this be blessed. 🙂
i just lost 8 min. of my live
Thanks a lot sir.. God bless you
Excellent advice
Hi, I am having some financial difficulty maintaining my margin. Happy if you could provide your advice for this.
What chart is he using?
What software is that?
Really informative and impressive…thank u sir
It surely gave me the insight to ponder upon what I did and what actually I have to do…amazing