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Do you set stop loss?


Anne Morris

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  • 3 weeks later...

I always set a stop loss. We all know how it can come in handy handy. For every broker I choose i must set a stop loss.  In all my time in forex I have realised how quickly emptions can take over us and I was not gping to let that happen to me. This is a common problem for all of the ewbies. Emotions can kick in at any time. The newbies get into forex with high expectations of making alot of money. When they begin trading and their trades work out then they feel the need to trade more and more. This is the desire for money and it leads to lots of losses. There is a saying about those who want everything gettong nothing. When you set a stop loss you limit the amount of money that you risk in trades through your broker. A good broker should therefore remind you to set a stopp loss. Any broker that does not tell you abou that is not worth it. It may not seem relevant for some newbies to set a stop loss but they have to know that is is a very important thing to do in trades.

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Stop-loss level at which the trade will end automatically at the loss cut. Therefore, the loss is limited. You also have to determine the position size of the trade. This should be adjusted for risk (stop loss) and account size. Take Profit level at which a trade is automatically settled with a profit. This is how traders secure profits. A trader should always set possible profit targets for each trade according to their trading plan. My broker ForexChief execute my take profit and stop-loss order perfectly

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A stop-loss is an order that you place with your  in order to sell a security when it reaches a particular price. A stop-loss order is developed to reduce a trader's loss on a position in a security. It is good to have this tool at times when you are not able to sit in front of the computer and monitor yourself.

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