What’s Size Should Your Stop Loss Be?

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#507: What’s Size Should Your Stop Loss Be?

In this video:
00:23 – How many pips should you risk per trade?
01:03 – Why pips are irrelavent
01:47 – What does a 20 pip stop loss mean?
02:14 – Where you should place your stop loss 
03:34 – Win a place on our coaching course
04:17 – Where to find a good broker

What size stop loss should you set and how many pips should you risk on every trade? Let’s talk about that and more right now.

Hey there traders Andrew Mitchem here The Forex Trading Coach with video and podcast number 507.

How many pips should you risk per trade?

I want to talk about how big your stop loss should be. How many pips should you be risking on every trade you see? It’s something that I get asked by non clients all of the time. And it’s really interesting because unfortunately most people out there set a certain amount of pips for their stop loss on all of their traits.

And to me it’s the completely wrong way of trading and you know, it’s the wrong way of trading because if most people are doing that and you also know that most people losing money, there’s kind of a correlation there isn’t there. You see it makes no sense at all. I’ll let you know why.

Why pips are irrelavent

Well, how can you have a set amount of pips as a stop loss on a trade? It has no relevance to that trade whatsoever and it has no relevance to the currency pair your trading. It has no relevance to the timeframe chart. It has no relevance to the movement in the market at the time, and none of it makes sense. But most people do it, and most people will say, as an example, I have a 20 pip stop loss and a 40 pip profit target.

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