#OrderTypes101

Why stop loss important :

A stop loss automatically closes your position at a pre-set loss level.

This prevents huge losses if the market moves against you.

✅ Controls Emotions

Traders often hold losing trades, hoping for a reversal.

Stop loss removes emotions like fear, hope, or panic.

✅ Allows Consistency

Keeps your risk per trade limited (e.g., 1–2% of capital).

Makes your trading systematic and sustainable over time.

✅ Prevents Liquidation

In futures trading with leverage, a small move against you can wipe out your margin.

A stop loss saves you from liquidation by cutting losses early.