There are many questions about the ways of placing stop loss orders and which technique to follow. Although no single one approach is better than the other, knowing which options you have and how to place a stop loss with different techniques is important. We will now introduce the 5 most commonly used methods, in our opinion, for setting stop orders.
Please note that it does not matter how we define the trade entry in the examples below and they are just meant to provide context for the way of setting stop loss orders.
Disclaimer: The placement of contingent orders by you or broker, or trading advisor, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to