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The Most Effective Method to Set a Proper Stop Loss

What is a stop-loss order? You place a stop-loss order with your broker to sell your securities when they are at a given price. These help to reduce the extent of loss you might incur. For instance, if you set your stop-loss order at any percentage below the price in which you bought the security, the loss will be limited to that percentage.How to Place a Stop Loss OrderThe best method to place a stop loss should involve placing it at a position where you will know that you were wrong about your strategy in case you’re hit. You cannot be perfect in all your trades. The prices of the stock will not always favor you after your purc…