Lock In Profits And Minimize Risk

Lock In Profits And Minimize Risk

Stop Loss Orders when used correctly can enable a trader to lock in hard earned profits and minimize the risks of markets wiping out gains.

Stop Loss Orders when used correctly can enable a trader to lock in hard earned profits and minimize the risks of markets wiping out gains.

Whilst the orders may seem far more complex than simple buy or sell orders, they are ultimately there to aid you.

A relatively new and interesting take on the Stop Loss order is the Trailing Stop. The order will allow a stop loss to be placed with function of shadowing the market price by a predetermined rate (read your brokers Terms of Business to fully understand their rules regarding such orders).

A common mistake will be for a winning streak to overshadow a traders’ Stop Loss policy – only to be reinstated following a costly and embarrassing lose.