STOP LOSS PLACEMENT
I RESPECT JEFFREY BENSON BUT I DISAGREE WITH HIM IN STOP LOSS PLACEMENT
Jeffrey benson is a very successful forex trader. I will go straight to my point
I have watched him say stop loss magnitude doesn’t really mean, you can make 50pips, 80 pis, etc. I strongly believe this is working for Jeff because of his strong technical capacity to get most of his trades right, so this cancels out few losses.
From a business maths stand-point Jeff i believe is wrong. If i place a 50 pipis stop loss for a trade at 0.1 lot size at one ratio 2 reward, and make $100. If in my next trade i place an 80 pips stop loss and it goes south, that is minus $80. And if that happens again that is -$20 balance.
Stop loss in my view should be placed incorporating principle of batting average. This increases your chance of having a net positive even after many misses. What you need is few wins, and they will cover up for many souths.
Batting average methodology that incorporates accounting and business maths procedure would shield a trader from having his prifits wiped out by few misses.
My name is AMUTAH CHUKWUDI.
Day trader
Whatsapp, 08137701720
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