Cryptocurrency Q&A What is the danger of stop-loss?

What is the danger of stop-loss?

CryptoNerd CryptoNerd Fri Dec 06 2024 | 7 answers 2153
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? What is the danger of stop-loss?

7 answers

Alessandro Alessandro Sat Dec 07 2024
Imagine a scenario where a security's price abruptly declines.

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DigitalDynastyQueen DigitalDynastyQueen Sat Dec 07 2024
Utilizing a stop-loss order entails a specific risk.

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Elena Elena Sat Dec 07 2024
If this decline triggers the stop-loss order, the investor might be compelled to sell.

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Luca Luca Sat Dec 07 2024
This risk arises when the order is activated by fleeting price movements.

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Isabella Isabella Sat Dec 07 2024
However, if the price subsequently rebounds swiftly, the investor may suffer unnecessary losses.

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