I thought it was apparent for me to write a post on how I objectively set the stop loss point. Typically all software that you have for forex is going to have a stop loss point. This is basically a mark you put on a trade that it will automatically sell if it goes down to it. It’s very simple and safe way to keep your money. Not to many people take advantage of it and a lot of people think they can make the decision themselves.

I believe in doing this objectively for one reason – in the heat of the moment, it’s hard to be objective. There are people out there that will watch a trade like a hawk. When it gets down to a point where they should sell, they end up holding onto it because they feel it will go back up and they don’t have to lose quite as much. The idea is that they think the trade might have bottomed and it would be stupid to sell at that point.

It’s basically a rough road to go down because it’s hard to say. It’s really an unknown because you can’t guarantee any direction when it comes to Forex. When I’m about to make a trade, I decide right before I make the trade on a stop loss point. This is about objective as it can get. I don’t “own” the trade yet, so I have no reason to have a bias. This is the best way to do things.