TIP: Hard Stops or mental stops?
|Use your platform to place the stops, not your mind. This is a good advice especially if you are not an experienced trader. Not only a stop loss order is an electronic risk limiting device, avoiding such problems as mentioned above, but it is also a measure against your eventual doubts about the decision you took to enter the market.
You can always feel tempted to let a losing position go against you in the hope the market turns in your favor, but when that happens you are probably not solvent anymore because of the leverage effect. To avoid that harass, let the platform automatically execute your stop. Read More
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