Without this risk management tactic, I lost $1,000 but could have gained $5,000. Read this issue to avoid the same mistake and stay consistently profitable.
Hi! Just wanted to make sure I got this - the stop loss will automatically sell if the price goes below a certain point? If investing long-term wouldn’t that cause problems if there is a sharp decline in the markets?
Yes, a stop-loss order will sell the asset at the price you set, although there may be a slight difference. However, it’s very close to the desired price.
If you’re investing long-term, I would not recommended to set a stop-loss order.
The strategy is typically used when you’re certain that the asset will decline in value (e.g. crypto is known to be cyclical).
I wouldn’t recommend using a stop-loss order with $VOO or similar assets. It’s more suitable for short-term trading or when you’re trading an asset that you believe will experience a short-term decline and you want to capitalize on it.
Hi! Just wanted to make sure I got this - the stop loss will automatically sell if the price goes below a certain point? If investing long-term wouldn’t that cause problems if there is a sharp decline in the markets?
Yes, a stop-loss order will sell the asset at the price you set, although there may be a slight difference. However, it’s very close to the desired price.
If you’re investing long-term, I would not recommended to set a stop-loss order.
The strategy is typically used when you’re certain that the asset will decline in value (e.g. crypto is known to be cyclical).
I wouldn’t recommend using a stop-loss order with $VOO or similar assets. It’s more suitable for short-term trading or when you’re trading an asset that you believe will experience a short-term decline and you want to capitalize on it.
Alright, that makes sense! Thanks for the help.