When I started to trade financial instruments, the stop loss order was the most difficult order to place in my trading.
Knowing that my broker knew where I set the stop loss orders made me feel really nervous.
It was the key element for my unsuccesful trades.
Be aware that I didn’t think about the stop loss as a way for avoiding big losses but I thought to the money I would loss in the case the stop loss order was triggered.
If you are a good trader you don’t think to money.
And if you don’t think to money you will be able to think at the stop loss order as the guardian angel of your wallet. The stop loss order avoid you to lose more money that those you can afford.
You can be the best trader of the world but without the stop loss order your destiny is marked and in the long period you will lose money.
You will became poorer and poorer.
The same concept applies for each investment you do.
When you buy a house, or a warehouse. or a company you should consider how much you can risk ( your stop loss order).
If you are a good investor and you are able to set a stop loss order, your profit will arrive soon.
The stop loss order is the best way to limit the “risk”.
There are some exceptions to the risk concept like for the binary options. You know, good rules have always an exception.
You should consider the stop loss if you are interested in improving your financial conditions, and so the financial conditions of your family.
There are a lot of sharks around markets and the only possibility to survive is to fix good plans.
Be aware that if you are able to survive you will be able to reach a good quality of life for you and for your family as well.
Matt
Article References : how to be rich , stop loss order , world economy , debt ceiling
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