Why you need to use stop loss when forex trading?

 

Many factors related to use stop loss in forex trading.

1. Market can move any way or zigzag motion (up and down) due to fundamental news from any country . Zigzag motion mainly happens when the investor doesn’t take proper discussion and reason is the fundamental issue. The market can move reverse motion when any unexpected result of any news coming.

2. Market can go in one direction without any correction or with small correction in a long time.

3. If you take any wrong decision, your account can be zero or suffering huge loss without stop loss.

4. Many investor blame that some forex broker makes fake candle and your account may be zero if spread too high.

5. Without a stop loss, you cannot set any target.

6. Without a stop loss, You cannot do proper money management.

7. Without a stop loss, You will not able to set mission and vision.

For that reason, you need to set stop loss.

 

Location: Bangladesh

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