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If you’re considering taking up Forex trading, either as a hobby or as a full-time occupation, you have probably read more than one article about the value of stop losses. But do you really need to use them in your trading? We discuss that question in this post.
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What Is a Stop Loss?
A stop loss order is a dollar amount you set in your trading tools. This order triggers the sale of a particular stock when the price of that stock reaches the point you have set. Its purpose is to minimize your trading losses. Nearly every successful Forex trader will tell you to use this tool. This is because your trading will be more profitable over time if you do.
But it’s important to remember that stop losses are only a tool. Like every tool, they work only so well as the strategies you use to implement them. In other words, you can develop a… Read More