🚀 Elevate Your Trading Game: Touch vs. Close Stops Explored! 📊

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The Pros and Cons of using a Bar or Candlestick Close Stop rather than a Bar Touch Stop.
Stop losses - there are different schools of thoughts of how to operate stops. One is to to cut trades as soon as a stop is breached and then look for the next trade.
Another school of thought argues that unless the bar closes above your stop level, you stay in the trade. Let's look at the pros and cons of both.
My personal opinion is that it depends on the strategy you are utilising - if you're employing a momentum type strategy you don't want to give it time to come back.
The video discusses the advantages and disadvantages of using either a bar or candlestick close stop versus a touch stop for setting stop losses in trading.
Two schools of thought are presented: one advocates for exiting the trade immediately when the price touches the stop level, while the other suggests waiting until the bar closes above the stop level to exit the trade.
Using examples from a EUR/USD chart, the video illustrates scenarios for both types of stop losses.
Advantages of a touch stop include guaranteeing the exit price and avoiding unexpected market movements, but it may lead to premature exits in volatile markets.
Advantages of waiting for the bar to close above the stop level include allowing for market oscillations and avoiding premature exits, but it also increases the risk of larger losses if the market moves significantly against the trade.
The choice between these methods depends on the trading strategy employed, with momentum traders favoring quick exits and mean reversion traders allowing more time for the market to reverse.
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[@lironyona8060]

There is a third way: flexible stop + hard stop lower just to be sure, such as under the previous low

[@despatrick5602]

Mark (i think i recall your name being Mark), you're looking great. Can tell you're keeping healthy

[@AM2K2]

I can't be currently trusted to have such a 'mental' stop - if it closed on the hourly I'd argue I should wait for the 4H 😅

[@LukaszAdams]

I always use hard stop loss and not when price or candelstick close becose i fear somthing can happend like news or macro data suprise and close my trade way higher or lower wher i got my stop loss.

[@Deepak-ut3lx]

Stoploss is the main reason why most trader don't make money

[@AM2K2]

Adding to losing trades is another...