Using A Stop Loss In Trading

Using a Stop Loss in Trading

Trading the capital markets requires a cohesive trading plan where you find a strategy for entering a trade and then build your risk management to aim to generate a profitable business.  Most investors are enamored with their trade entry, but fail to spend the appropriate time building a robust risk management plan which is the backbone of their trading business.  One of the first steps and investors should determine when they decide they like a specific trade is to determine where they will stop out of their position with a stop loss.

Creating a stop loss

Prior to initiating a trade, you should first determine how much you are willing to risk on that trade.  The risk could be in the form of a percent of your capital, or a dollar figure.  You could also determine that you are willing to risk a specific figure related to the security you are buying or selling.

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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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