You don't need a stop loss when trading stocks because unlike forex, you have a fixed amount set on each trade (assuming cash account). So if you take 2% of your equity on a stock trade, you don't need to put any s/l since if the stock goes down to zero, you'll only lose 2% of your equity.
However, you need a stop loss in forex because your 2% only tells you your lot size (how much you'll get/pip) so if you put no stop loss, you'll keep paying the defict/pip.
Basically you don't need a stop loss trading stocks but you do in forex by the reasoning above. Is taht correct? can somebody verify
However, you need a stop loss in forex because your 2% only tells you your lot size (how much you'll get/pip) so if you put no stop loss, you'll keep paying the defict/pip.
Basically you don't need a stop loss trading stocks but you do in forex by the reasoning above. Is taht correct? can somebody verify
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