✍️ Stop Loss in Trading

In the volatile world of trading, where prices can change in moments, making smart and quick decisions becomes the distinguishing factor between profit and loss. One of the most important tools that traders use to protect their capital is the "Stop Loss" tool.

What is Stop Loss?

Stop Loss is an order placed on the trading platform to automatically close the position when the price reaches a certain loss threshold, predetermined by the trader.

Importance of Stop Loss:

1. Capital Protection: Prevents further bleeding during sudden market downturns.

2. Risk Management: Helps to limit losses within acceptable boundaries.

3. Emotional Control: Prevents making impulsive decisions during market fluctuations.

4. Commitment to the Plan: Enhances discipline in trading strategies.

Illustrative Example (as in the picture):

The picture shows a series of candlesticks, starting with an increase (green candle), then decreasing consecutively (red candles). The raised hand in the picture symbolizes "Stop Loss", as if it is preventing further losses. It is a smart visual cue that illustrates how Stop Loss can halt a series of consecutive losses.

✍️ Stop Loss is not just a technical tool; it is a defensive mindset that protects you from falling into the trap of greed or panic. Do not start any trade without first determining: "When should I exit?"