Stop Loss should only be used as a beginner -except your system is automatically and build around it. There are different reasons for that to avoid Stop Loss. The biggest Reason is the hunting. In Germany lots of Bank earned money by that bringing products on the market saying: "If 7000 not reached today at DAX, you earn money - if it hits one time you lose all." So lots of people were betting on that, let's say 10 Mio Euro. So a free lunch for the banks if they manage to push the DAX below 7000. Guess who won a more than losing?...
I know it is an extreme example but the big players almost never us Stop-Losses, may be part Stop-Losses to protect in a weird occurance like last year on GBP in September.
SL is also difficult to use as a countertrend and swing trader but that's another story. You have to handle the losses here. Not easy and you have to know exactly what you are doing.
I know it is an extreme example but the big players almost never us Stop-Losses, may be part Stop-Losses to protect in a weird occurance like last year on GBP in September.
SL is also difficult to use as a countertrend and swing trader but that's another story. You have to handle the losses here. Not easy and you have to know exactly what you are doing.
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