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GeekyForex
Should you place a stop loss in trading?
in
Galvenais
May 25, 2024 at 09:02
A stop loss is essential! As you have said, Forex trading is not gambling and as such a trading strategy should be utilised that incorporates stop losses. If trades are hitting their stop and then prices reversing into a position in which there would have been profit, further consideration to areas of liquidity should be given.Institutional traders will seek to close out speculative traders stop loss orders by targeting liquidity i.e. the point at where stop loss orders sit. If a stop loss order is placed below this liquidity zone, it should be hit only in the event of a market shift.
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