Most of us've heard about STOPLOSS when we enter to the world of trading and investment. But What's the real meaning of STOPLOSS?
Most of the traders think that STOPLOSS is bad and move SL away from Entry Price. Some people remove SL or didn't set SL. Because we lose our money when we hit SL and we get money when we hit TP(Target Profit).
But It is not losing money. It is preventing our money. Let me explain to this.
If you have 1000USDT in your future account, your potential amount for losing money is 1000 USDT (100%). 100% That's Ture. You won't lose 1001 USDT anymore.
So, when you set SL , it means that you've defined your risk per single trade. If you decide to take a risk 5% per single trade, you will lose 50 dollar per single trade.
In the other hand, You will lose only 5% of your account (50$) Not 1000$. Now you prevent your account form losing all money.
By setting SL, you won't face with the big loss on the single trade.
So In my opinion, We should set SL every single trade to prevent from big losses.
Tell me what do you think in the comment.
