Below is my personal perspective on an important topic in Forex trading: STOP LOSS IN TRADING.
Why Some Traders Don’t Use Stop Loss
When you see someone trading—or showing their open positions—without any stop loss, there are many reasons behind it. And aside from the trader themselves, no one else can know exactly why they choose not to set a stop loss.
Here are several common scenarios:
1. They are new to trading
Some beginners simply do not know what a stop loss is, or only understand the concept vaguely. Many still do not know how to properly place a stop loss for a trade.
2. They split capital into many accounts and go “all-in” on each one
If someone divides their funds into multiple accounts and uses full margin on each trade, then a stop loss becomes meaningless—because in their strategy, either the trade wins or the account resets.
3. Very large account, very small trade size
If a trader has a large balance but uses only a tiny position size, they can absorb normal market fluctuations over hours, days, or even weeks. They simply manually close trades at:
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their target zone, or
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their pain threshold (psychological tolerance)
So in this case, stop loss is optional.
4. Large account, very small lots, long-term holding
A long-term trader using extremely small positions relative to a large balance often doesn’t need a stop loss—as long as no major high-impact news occurs during the holding period.
5. Many other personal reasons
(There are countless reasons depending on trading style, psychology, or risk tolerance.)
6. Or simply… they don’t like using stop loss
Sometimes the reason is just that simple.
Therefore, we should not automatically think someone is crazy or doomed just because they showed a “no stop loss” trade. That judgment would be overly subjective.
Why Traders Should Use Stop Loss
Here are the key advantages:
1. Effective risk control
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Sleep peacefully
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Avoid emotional stress from large adverse moves
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Maintain a stable psychological state, which is vital for long-term success
2. Better capital management
Because your risk per trade is fixed, your long-term capital plan becomes more calculated and sustainable.
3. Clear and decisive error correction
Without a stop loss, inexperienced traders often:
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Freeze when price hits the “confirmation-of-wrong” zone
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Fail to close losing trades
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Hope price reverses to “turn defeat into victory,”
…which often leads to even bigger damage.
With a stop loss, the system automatically cuts the trade—even if you are relaxing in a café.
Advantages of NOT Using a Stop Loss
Surprisingly, No Stop Loss also has certain benefits:
1. Avoiding broker manipulation (“stop loss hunting”)
Some brokers intentionally widen spreads or create brief price spikes during:
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low liquidity
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market open/close
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news releases
This can “stop out” traders unfairly. Since this practice is often covered in the brokerage terms, complaining doesn’t help.
2. Avoiding sudden market wicks (pinbars)
A no-stop-loss approach avoids being prematurely kicked out.
3. Mental training and discipline
Trading without a stop loss forces you to:
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Be extremely decisive
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Cut trades manually when price reaches danger zones
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Admit mistakes quickly
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Stay emotionally neutral
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Build psychological resilience
This is one of the core skills for success in trading.
Conclusion
This short article gives you a more complete understanding of both the advantages and disadvantages of using a stop loss—and of trading without one.
Each method has its own place depending on:
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capital size
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experience
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psychology
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trading strategy
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market conditions
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