One of the first things we traders learn is how to place a stop loss. An effective stop loss strategy helps stop the proverbial bleeding when market direction turns against you, cutting into your account balance.
The idea of placing a stop loss is pretty simple but choosing the right place to set a stop loss can get challenging. On one hand, it is a matter of picking a price level beyond which a trade bias is no longer valid.
On the other hand, depending on the complexity of your trading approach, you may need to integrate it into your trades from a more strategic level (especially if you are unloading partial positions or if you are trading multiple markets at once).
The idea of placing a stop loss is pretty simple but choosing the right place to set a stop loss can get challenging. On one hand, it is a matter of picking a price level beyond which a trade bias is no longer valid.
On the other hand, depending on the complexity of your trading approach, you may need to integrate it into your trades from a more strategic level (especially if you are unloading partial positions or if you are trading multiple markets at once).