Many beginner traders don’t use a stop loss in their trading. A common occurrence among new traders is opening a long position without a stop and when they come back to their position the next day, they are shocked by how much of their account they have lost. It turns out, in most cases they were over-leveraged and did not use a stop-loss, resulting in the unfortunate loss of a large percentage of their account. This is a reminder to all traders out there to learn the importance of the basics and practise responsible trading. Don’t use too much leverage in your trading and do use a stop loss. So, if you are trading without a stop loss, make sure you start using one since unexpected events can and do occur in the market. Don’t be caught out.

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