I'm wondering about the potential risks or dangers associated with stop-loss orders in trading. Could someone explain what the hazards might be if I use a stop-loss strategy?
7 answers
Alessandro
Sat Dec 07 2024
Imagine a scenario where a security's price abruptly declines.
DigitalDynastyQueen
Sat Dec 07 2024
Utilizing a stop-loss order entails a specific risk.
Elena
Sat Dec 07 2024
If this decline triggers the stop-loss order, the investor might be compelled to sell.
Luca
Sat Dec 07 2024
This risk arises when the order is activated by fleeting price movements.
Isabella
Sat Dec 07 2024
However, if the price subsequently rebounds swiftly, the investor may suffer unnecessary losses.