Quote from: Stepstowealth on November 25, 2023, 04:28:27 PM

Quote from: Richkiedx on November 25, 2023, 03:16:28 AM

how do you use a stoploss

You set your stop loss as a safety when you are sure and not sure about the direction a trade will go. If you are selling, your stop loss should be set above the point at which your trade was executed, so that your capital will be save if the trade buys instead of sells as predicted. If you are buying, stop loss should be set below the point of execution of the trade. The ability to be able to detect and correctly set up stop loss in each trade will help the trader ensure that they do not loose too much to a trade if it does not go as planned.

To start with stop loss helps to prevent financial loss. Stop loss is an order that is associated with an open trade or a position in an open market. It is designed to get you out of a losing trade at a predetermined level or predetermined financial amount to prevent any further loss. You should use it as a beginner and a very important benefit is that it protects you from unforeseen events that take place in the trading space. Also setting a stop loss gives you control over the risks inherent in a trade.The way to use a stop loss is to place the stop loss where you don't expect to get stopped out. First view the market using a top-down approach. Using a chart, draw in your key levels of support and resistance because that is what will form the basis of where you place your stop loss levels.