7 Benefits of using stoplosses

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.

if use large lots size its more risk stop loss so not good to use stop los

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.

Stop loss is very useful and popular among traders. It prevents them from incurring any further losses and is quite helpful for some.

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.

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.

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.

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

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?

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.

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.

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.

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.

Stop loss is an important discipline which is very helpful if there is any sudden change in volatility of the market or asset.

The main benefit of a stop loss is that is limits your losses. That is enough to make a stop loss essential

With stop-loss, you can avoid big losses.

Stop Losses help you to keep your losses in check. If you are a newbie or do not have in -depth understanding of the market, stop losses can help you protect from losses.

Stop Losses are really beneficial in profitable trading, because it provides protection against excessive losses, enables traders to ensure better control of their trading, can be used to monitor multiple deals, easy to implement, and allows newbies to decide on the amount of risk they can take.

Always use a SL