Preventing Big Hits
Setting a smart STOP loss is good for protecting your balance If your in a long trade going for say 3 days, and you are -100 pips down then you will need a very high STOP loss or none at all to stay in the trade, without having a big STOP loss or no STOP loss at all you could get a Margin-Call and lose it all. This is the risk you take while being involved in long term trades. Below i have used a STOP loss example of 40pips. If u lose 40pips or more your trade will close. Your STOP loss can vary depending on how long you want to trade for, Short-Term traders will have a lower STOP loss in place while long term traders may take more risk.Here is an example table I have made, the POSSIBLE LOSS is the STOP loss.

REAL LOSS... POSSIBLE LOSS.... POSSIBLE SAVINGS
67 .......................40 ........................27
104 .....................40 .........................64
74 .......................40 ........................34
total loss prevention: 27+64+34 = 125pips While every trader has there own stradegy; If overall your taking a lot of big hits then you should consider using a lower STOP loss.
editor: Pintu Lund
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