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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
