One of the powerful trading tools is stop loss. A lot of trader don't use it or don't use it effectively. Stop loss is important in so many ways, by helping you reduce your capital loss per trade whether you are on it or away. Once the stop loss is set, if the trade goes against you some portion of the trading capital will be lost depending on how big or large the stop loss is.

However, stop loss is also advantegous when your trade is in profit. You do this by adjusting your stop as the trades moves in your predicted direction so that part of your profit will be what you will risk as your stop loss and not your capital. Many people do not understand this and lots of people make so many mistakes about the stop loss usage by either moving their stop loss too fast or keep it at the initial point.

This is a Trade management tips and it plays a huge role in your trading results.