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Knowing Several Stop Loss Strategies Will Make You a Better Trader

When trading the Forex market, how you manage your losses is an integral and critical part of every trade you enter. Your stop-losses will protect you against any unexpected and sudden market moves. In this article, I will discuss 3 of the several options you have when using a stop loss to protect your capital. Among the 3, the third option is specially good since not many traders use it, but all traders should be aware of it.

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A stop-loss is simply put as the amount of risk you decided to take when you enter a trade. When you place your order, a stop-loss should be included with that order. That will protect you from sudden, unexpected market moves against your position and limit your losses. This is the most commonly used stop-loss and the least profitable of all these strategies.

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