As a trader whether you are just starting or the experienced ones, everyone learns the discipline of using stop-loss in their trading carer. Some learn it early and easily whereas some learn it the hard way. So what is stop loss to be exact, It is a placement of an order in which you place the value of what you can take maximum risk in one trade. What if u u don't place an actual Sl and just make a mental note, So if the price declines by 1% and the mental SL was of .5%, there is already a slippage of .5% and by the time you place the order, no one how much the price may decline furthermore.
So the bottom line is that always trade with an appropriate StopLoss, and take the exit when the price hits it as that is another phycological barrier faced by traders. As many of the traders are those who get panicked or loose their calm and don't execute the order or may cancel the already placed order when the see that the price value is near the SL placed.
Maintaining this discipline is the single most important part of your trading carer. And to become a successful trader in life, Learn to manage your risk by a way that no matter how many negative fluctuations are taking place in the market your portfolio remains in good hands and you keep on seeing profits. We at IFM Trading Academy teach the most integral parts of Risk Managements with ease and learn how to create an indispensable portfolio.
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