🛑 Stop Loss #PowellRemarks
What is "Stop Loss"?
Stop Loss is a tool used by traders to protect their capital from significant losses. Simply put, it is an automatic order executed when the price reaches a predetermined level to close the trade and set the maximum loss you are willing to accept 📉.
Why do we use it?
To reduce risks 🔒.
To protect realized profits.
To avoid emotional decisions during market fluctuations.
Its importance in capital management
Stop Loss is not just a means to exit a trade, but an essential part of a professional trading plan 📊. It helps you withstand the market in the long term and not be swayed by greed or fear.
Common mistakes in using it 🚫
Setting the Stop Loss too close to the entry price, leading to a quick exit from the trade due to natural fluctuations.
Not using it at all, exposing you to massive losses.
Changing it randomly during the trade.
Golden advice ✨
"Controlling losses is more important than pursuing profit."
Profit will come, but staying in the market requires protecting capital first!
