I noticed when I was following the selling movements of any currency, that after the fall of any currency, some traders stop the loss at levels higher than the purchase price to reap some profits, as they think, and others sell immediately after the price drops to the purchase price....
These actions have an impact on the market in general, and this does not depend on stopping the loss with a well-thought-out strategy....
The results of these actions:
- Missing the opportunity if the price rebounds without reaching the resistance point and missing the opportunity to rise.
- Not finding a new entry point or losing the time invested in the currency.
There are many, and this is why stopping loss is a well-thought-out strategy.
It is not related to the descent and it is not related to the return of capital.