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Should you place a stop loss in trading?
på
Allmänt
May 24, 2024 at 04:21
Your reflections on stop loss are astute and reflect the ongoing debate within trading circles. Stop loss orders are indeed a double-edged sword. While they can help limit losses and manage risk, they can also sometimes lead to premature exits from trades, especially in volatile markets where price fluctuations can trigger stop loss orders before the market moves in the anticipated direction.It's true that there are instances where the market hits your stop loss and then reverses sharply, potentially causing frustration. This phenomenon is often referred to as "stop hunting" by s...
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