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7 Benefits of using stoplosses

ElliotCooke
Oct 07 2020 at 19:16
341 posts
Stop loss is very useful for new traders. But to use stop-loss ou need to have proper knowledge about this.
ethan_65
Oct 08 2020 at 09:18
41 posts
Stop-loss has certain advantages which I wish to add in this thread:
1. Cutting your losses: Stop loss helps you to cut your losses and ensures you against a big loss.

2. Automation: Stop loss helps to automate your selling and hence you do not need to be present all the time.

3. To maintain ‘Risk and Reward’: It’s really important to maintain risk and reward while trading.

4. Promotes discipline: It’s really important to detach yourself from market emotions.

These are my thoughts on the benefits of stop loss for a trader.
abdalayahye
Oct 08 2020 at 09:58
1 posts
if use large lots size its more risk stop loss so not good to use stop los


SofieAndreasen
Oct 16 2020 at 17:30
759 posts
ElliotCooke posted:
Stop loss is very useful for new traders. But to use stop-loss ou need to have proper knowledge about this.
Especially knowledge of support and resistance level is important. Always enter the market with SL. Most of the new trader fail to do that.
Marlonsmith
Nov 09 2020 at 12:51
28 posts
Yes, that’s true. Stop loss is very important for any trader who wants to save himself from unnecessary losses.
Robert (Robert647373)
Nov 09 2020 at 13:37
95 posts
Stop Loss is an important tool to protect a trader's account. But there are traders who do not use it, and these are mostly beginners who will soon lose their account. Use a stop loss, pull it up behind the price and you will limit your losses and securely lock in your profit. But in any case, do not move the stop loss against the price. That is, the price goes against you, and you are trying to push the stop loss further away - this is definitely not worth doing, since there are certain price levels to which the price does not return for a very long period of time.
Charlessmith
Nov 12 2020 at 06:43
25 posts
Stop loss is very useful and popular among traders. It prevents them from incurring any further losses and is quite helpful for some.
Ericdier752
Nov 27 2020 at 05:11
59 posts
As a newbie, one must take every step carefully. One wrong step and you are gone. Stay calm and decide wisely.
RobertFerrari
Jan 26 at 17:55
415 posts
Ericdier752 posted:
As a newbie, one must take every step carefully. One wrong step and you are gone. Stay calm and decide wisely.
Yes. You are right. Every trader should make their decisions carefully.
LeoGM
Mar 04 at 06:53
67 posts
Avoiding using SL is all about foolishness of a trader because it bears a high degree of losses for them. A sl is usually set according to support and resistance level. Forex is a highly volatile and unpredictable market. So, a SL guards against any loss due to the sudden reverse jump of the market.
reggae
Mar 04 at 11:34
70 posts
I know few but wow this list should come in handy if someone will keep pestering on me that stop losses is not that as important as it sounds.
skihav
Mar 04 at 13:15
801 posts
In my opinion, this is a really useful tool for work. With the right approach, the result can be really profitable.
Williamfreed
Mar 08 at 02:01
176 posts
When a stop-loss order is placed with a broker, it instructs the broker to buy or sell a specific stock once it reaches a certain price. Stop-loss orders are designed to limit an investor's losses on a security position.
CraigMcG2020
Mar 08 at 08:01
399 posts
A lot of good information i personally cant see one positive to not having a stop loss. Yes it gives the trade room to move but its too hard to define then. It also makes the losses so much bigger than the wins and thus only take a few bad trades to wipe out months of good work
Seb King (sebking1986)
Mar 08 at 12:19
538 posts
I can't think why you would't trade with one to be honest. When I enter a mate I want as much protection for my capital as possible. Why on earth would I leave all my capital exposed easily?
If you can't spot the liquidity then you are the liquidity.
maria_no
Mar 08 at 12:28
15 posts
ethan_65 posted:
Stop-loss has certain advantages which I wish to add in this thread:
1. Cutting your losses: Stop loss helps you to cut your losses and ensures you against a big loss.

2. Automation: Stop loss helps to automate your selling and hence you do not need to be present all the time.

3. To maintain ‘Risk and Reward’: It’s really important to maintain risk and reward while trading.

4. Promotes discipline: It’s really important to detach yourself from market emotions.

These are my thoughts on the benefits of stop loss for a trader.
Very well said.
Terentius (Siomo)
Mar 09 at 12:54
20 posts
Yes, the use of stop losses provides a control risks. Trade planning comes down to the fact that you determine in advance the maximum of your allowable drawdown.
When it comes to emotions, it is very common for emotional traders to start changing stop loss parameters during trading, which leads to a loss of control.
If you are a good trader, then you always know your risks and the maximum allowable drawdown without stop losses. So, I believe that using them is optional and depends on the strategy.
podunk
Mar 24 at 07:39
18 posts
Protecting your trading capital is the top most thing that all traders should do. And it is where stop losses help. They not only prevent big losses, but also strengthen your risk management game. It is always a safe option to use stop losses.
Marcolis
Mar 26 at 05:19
181 posts
Using stop loss has endless benefits but the major benefit is that it guards against losses. Sometimes you cannot stay home and by that time if the market moves roughly, it will cause you a great loss. And it is where stop loss works as a shield. So, make it your priority.
Commonition
Mar 28 at 08:08
23 posts
Stop loss is an important discipline which is very helpful if there is any sudden change in volatility of the market or asset.
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