The importance of stop loss in the trading market?

Capital management and protection is the primary task that falls on you as a trader. If you lose all your capital in trading, you will not be able to recover the amount you lost, and thus you will exit the trading field. The only tool for managing and protecting capital is to use stop loss.

What is stop loss?

Stop loss, also known as SL for Stop Loss, is an action taken to stop trading when the trader's analysis and trading strategy are not sound, and the trade is closed in order to avoid additional losses or reduce profits. Traders use stop loss orders to close losing trades or to avoid losing profits.

The importance of stop loss in trading

Setting a pre-exit point for a losing trade not only helps reduce losses and allows moving on to new opportunities, but also helps eliminate the anxiety resulting from staying in a losing trade without a plan.

The primary purpose of stop loss is to ensure that losses do not worsen significantly. In fact, the stop loss point should be considered the "base point" in your trading strategy.

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