Post
Topic
Board Trading Discussion
Re: Risk management: How to set a Stop Loss
by
Johnyz
on 06/12/2022, 21:45:08 UTC
Trading without a Stop Loss is the testimony of a lacking trading system. And I think using Stop Loss prevents you from adding to your losses and being emotionally attached to a trade.

Most traders prefer to close their orders manually, and the main reason for this is that very often the price drops quickly and immediately returns to its previous value. In this case, your order will be closed and you will incur a loss. It would be more correct to wait until the price is fixed below the support level and in this case close the order manually.
Even if you do this manually, I believe it is still advisable to follow your stop loss price to avoid further losses. Many tends to wait for another confirmation before executing their stop loss action and the result becomes worst for them. Usually, traders always do this in futures because you can't afford not to set-up this one or else you'll be liquidated. We should always have the target price and the cut loss price, by this we can be more responsible trader and succeed in the future.