Why do we need to put take profit and stop loss

[Wizmely]

In as much as you applied risk management, do we still need the fear of putting resistance and support, just Incase the market went against us?

 

[sublimetek]

yes, ALWAYS set a slop loss, and respect it. You will not win every trade, minimize you losses, it is impossible to avoid them, they will just turn into bigger losses if you try to avoid them

 

[joemamela]

A stop loss in case you lose power or get distracted while scalping.

 

[abs_78]

this is for risk management, especially stop loss, you never want to loss all your money in one single trade

 

[Tolu234]

Basically for risk management. Another way to stop loss is to divide your funds into fractions you can afford to lose then open your trade. Because sometimes stop loss may be hit and market still later goes in the direction you analyzed.

 

[Bobtheboss]

The answer is it depends on your philosophy of trading. Some look at SL as the last stand to validate your prediction is wrong and you need to get out. Same thing goes for TP. You did not read the trade correctly if it goes beyond your TP point and you need to analyze what you missed. But that is just one way of looking at it and as I said it all depends on your philosophy. There are thousands of opinions on this so figure out which one fits your trading style and strategy.

 

[Wanted1974]

I always have a S/L, as previously metioned its for risk/cash management and also a way of telling you that your analysis or strategy was wrong this time.
There will be times when you lose or have losing streaks, its normal, and by having stop loss in place protects you.
Remember to take a loss and let your winners run. Once my winner is running, what I like to do is close half the position and bring the stop loss of that position to break even and leave the trade running. That way my trade has already earnt me money(winner) and if it then goes against me it will hit the stop at break even.

 

[Johnol]

Large news events can drain your account if you're not careful. You could go from a full account to an empty one in less than 5 minutes with no Stop Loss.