#StopLossStrategies

normally a Stop-loss strategy is used to avoid more losses when the trend goes against the trade decision by automatically exiting the trade at a threshold point. Can Stop-Loss strategy value change? No, stop-loss order strategy value is not influenced by the changes in market trends.

Here's how they work: If you purchase a stock at a certain amount of money, say $20, and you want to make sure you don't lose more than 5 percent of your investment, you'll want to set your stop-loss order at $19. If the stock falls to $19 or below, it is automatically sold at the best market price at the moment.

The Golden Rule is all positions must have a Stop Loss in place. Have the discipline to place a protective Stop the moment you've entered a position. Do not wait; the Stop should have been part of your trade plan. Only move Stop-Loss positions forward, never back.