Why Setting Stop Losses Can Save You

Stop loss in a trade is very important as it will help you to minimize losses when the market moves against you. When trading always put a stop loss as sometimes market may make a very fast and furious turn against you. An example was one of my trades that turned against me while I was not actively looking at the market.

In this trade, I had a short in GBPUSD with a very good entry. I was expecting a breakout from the consolidation but it never happen and market moved against me while I was away from the market in the day. The stop loss saved my trade from bigger losses as it went further up. What happens if one never put stop loss on a trade? Heavy losses of course! Hence the lesson every starting trader is to have stop loss! Never have a trade without stop loss!