Can you trade without a stop loss?
This is the most frequently asked question on every forum.
Again, this is a very dangerous problem.
If traders do not set a stop loss, tragedy is bound to happen.
In a series of such questions, we find that traders generally have the concept that by not placing a stop loss, they are able to deal more flexibly with sudden market activity.
They are confident that the price trend will reverse.
If they stay in the trade long enough, the market will eventually move in their favor and they will always end up avoiding losses.
This view is very wrong from any point of view, and it is impossible to ask such a question and get an answer on how to trade better.
It is important to acknowledge the loss and move on to the next trade.
If traders cannot handle failed trades, they are not fit to trade at all, and the market will eventually prove it.
Stop losses are the most important tool a trader has.
If you don’t use stops and don’t know how to handle losses, you will never become a better trader.
Ask yourself the following better questions: 1. Are stop-loss orders priced at a level where the trend is too clear?
2. What do these loss-making trades have in common?
What can I learn from it?
3. Is there a better way to stop losses?
I try different approaches and evaluate their strengths and weaknesses.
4. If prices are always heading in a negative direction, should you delay entry?
As Europe’s energy crisis intensifies supply constraints, oil prices have enjoyed a third straight pre-Christmas rally and gold has held steady.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
