Some traders avoid using sl thinking that it would limit their profits. But I don’t think it is right to think like that. Trading with a stop loss can help you limit your losses to a great extent.
How to be okay with taking a Stop Loss?
- Thread starter Valencia333Raul333
- Start date
Absolutely right. SL is a plus. Period.
If you give your stop a little room at what point do you know that it's not going to reverse as soon as your order is filled. A stop loss is not going to prevent you from taking a loss, it's going to prevent you from taking a BIG loss.
Yeah, understandably why they are thinking of that, but it is very useful in case you do not want to over extent your losses in trading.
@robindude Then you might be setting a tight stop loss. If you don’t want it to be triggered with small fluctuations, read your charts carefully and place a stop loss slightly below the point from where the price is bouncing back. Another way to solve this problem is by trailing your stop loss.
Wrong SL positioning may be...
Initial size is my stop loss. Then there is also an actual stop loss which I rarely use.
Initial size?
I scale into trades. So I start small enough that hitting the stop loss doesn't ruin my day. Then I add aggressively as I determine that I am correct, but I never add to a losing position.