THE NEED TO PLACE STOP LOSS
Following with the series of articles on risk management in stock exchange investments in this article, I want to talk about how to place the stops correctly when we launch a stock exchange operation.
Stop loss must be placed whenever we do a stock exchange operation. With this rule there are no excuses because if we start doing operations without their corresponding stop loss, even once, our mind will play a trick on us and when we get used to not putting stops we will not put any.
This is a big mistake for beginners, neglecting stops, and it is the number one risk management rule that we should never skip. Not putting our stops in a stock market operation is the same as jumping into the void without a protection network. Our life is in danger, and in the case of investments our capital, which has taken so much effort to accumulate, is in danger.
As the price of our share goes up we can release part of the risk we had assumed and finally when we release all the risk we will have an action in positive, with gains, and we can consider carrying out a study to include new investments in our portfolio.
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The issue of Stop Loss is something I must learn urgently. I have already lost some money for not knowing how to use it. The good thing is that the Binance App can be done!
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If you do trading it is very important to use stop loss to protect yourself from possible losses. It is also necessary in long-term investments, when the stock goes up in value one is also raising the stop loss to ensure profits.
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buena información amigo
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Congratulations! This post has been upvoted from the communal account, @minnowsupport, by Vicente Calduch from the Minnow Support Project. It's a witness project run by aggroed, ausbitbank, teamsteem, theprophet0, someguy123, neoxian, followbtcnews, and netuoso. The goal is to help Steemit grow by supporting Minnows. Please find us at the Peace, Abundance, and Liberty Network (PALnet) Discord Channel. It's a completely public and open space to all members of the Steemit community who voluntarily choose to be there.
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