Best Practices for Risk Management Using Stop Loss Orders

Day Trading Futures: Using Stop Loss Orders Stop loss orders (also referred to as a stop-loss, or stops) is a tool that is used to exit a trade once its movement begins to lose money. Anytime the market starts to move against the trade; the system will automatically knock the trade on the market once the stop loss order price has been reached. To achieve the status of a highly successful trader when day trading futures, traders need to use a stop loss in every one of their trades without exception. Profitable traders use stop losses for both regular exits and emergency exits to prevent a crash when the market turns heavily against them. How to Place a Stop Loss Order Correctly when Day Trading Futures There are two separate correct methods for how to trail a stop loss. The first is more often than not used by discretionary traders when they place it at a price level that the trade is unexpected to reach. The price at which it is placed is often at a level that would make the trader f
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