Trading Mistakes: not using a stop-loss
IG analyst Axel Rudolph tells IGTV's Angeline Ong about the importance of always using a stop-loss when trading.
(Video summary)
Using a stop-loss when trading
In this video, IG analyst, Axel Rudolph talks about the importance of using a stop-loss when trading. He recommends using a special type of stop-loss called a guaranteed stop-loss. Although this option may cost more, it has a big advantage. It lets you set a specific level at which your loss will be guaranteed. This is really helpful during times when the market is very unpredictable and can suddenly crash or become very volatile.
Guaranteed stop-loss
With a guaranteed stop-loss, if the market goes against you and you get stopped out, you know exactly how much you will lose. Axel stresses how careful and serious you need to be when trading because things can change really quickly. He compares trading to holding a bullet with your name on it, meaning that each trade carries a lot of risk. It's possible that you could lose everything if things don't go in your favour. So, it's really important to protect yourself by using a stop-loss.
Overall, Axel strongly advises using stop-loss orders and talks about how guaranteed stop-losses can be even better. He also makes it clear that the future is uncertain, so it's crucial to be diligent and aware when you're trading. Don't take unnecessary risks and always protect yourself with a stop-loss.
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