Stop Losses- how do you use them - and why do prices Spike ?

[EURUSD]

I always use stop loss trading tool for my capital security. In addition, I like to set my SL around strong support level and resistant level. I know, if a set my stop loss without my analysis then I have to face my stop loss. This is way, I always set it according to my analysis.

It is good to use Stop Loss in every transaction as long as you could set Stop Loss in the right price so it won't be easy to be hitted and it can prevent big loss. But if you can't use Stop Loss well so it is possible to make your account drained with the stop loss. So, it's back to the trader about the best price for setting stop loss in the right price. Usually, setting stop loss has close relationship with right price for opening position.

 

[achingbulbous]

thanks for such a good advice and for asking such good question

 

[george91]

l also benefit from these information.