For Your Account Safety
Since forex are a roller coaster ride that aren’t smooth and full of noise then you must always use stop loss as safety belt to secure your margin. But it will becomes difficult for most traders to understand where to put the stop loss. There is so much noise in the forex markets in the short run that prices tend to jump 10 to 20 pips for no apparent reason.
Most of the new forex traders get frustrated to find their stop loss being constantly tripped due to noise even when the market is going in the anticipated direction.
Many new forex traders develop the habit of using a static stop loss. Many also try using a trailing stop loss. However, if placed too close then your stop hits too early. And if placed too far then you will have to forgo potential profits if the price retraces later on.
The actual reality is this that some professional forex traders do use stop loss but the other aren’t using it at all. The better method to place a stop loss is by test the best that suite for you and discipline with using it by never change the stop loss no matter what happen.