#StopLossStrategies

Using a stop-loss strategy in day trading is a personal choice, and the most important thing is to determine the correct value for stop-loss orders. A stop-loss avoids losses that fall below a certain level in the direction and exits the trader from the trade, but failing to set the correct value for the stop-loss allows losses to increase, which is more conservative and risky, as it leaves the day trader without making any profits. Most of the time, traders set the stop-loss value above the stock purchase price when the trend is upward. In this case, if the trend declines or there is a downward trend, the trader has at least made some profit.

Additionally, the trader can leave the trade for a certain day knowing that there will be no losses or minimal losses due to stop-loss orders when they are busy on vacation or on a trip.