FlirtLife
Senior Don Juan
- Joined
- Jan 31, 2023
- Messages
- 394
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Saying "losses will be small while gains are much larger" is based on 1 month experience as a retail investor in Forex. Consider which is more likely: the Forex market is efficient, or a retail investor has found a way to make money for free within 1 month.Maybe but it's irrelevant. Losses will be small while gains are much larger. Everyone loses, the difference between people who make money and don't make money is that their gains far exceed their losses.
That's where risk management and stop losses come into play and waiting for proper confirmation signals. I've improved tremendously in that area, which is definitely something I have struggled with in the past.
You are talking about a random event happening versus once a decade versus something that literally happens daily.
Using stop loss orders is good practice. But they are not a guarantee.
Do Stop-Loss or Limit Orders Protect You Against Gaps?
If you are worried about a gap down in price, relying upon the standard stop-loss or limit order as protection likely isn't your best bet.
www.investopedia.com