People think,stop loss must be used to avoid from the loss.But it’s not a true way of escape from the loss.When you had fix the stop loss,it will prevent from the more Loss.But when the market was back to the bull run,the order will be placed with minimum profit.Then it will skip you from gaining more profit from it.It only leads to less amount of profit from your investment using stop loss.
Perhaps, stop-loss is not designed to make a profit but as a way to save from losing more.
Fees/commissions are mostly what we struggled with in most exchanges. That is why I was still confident and I see that spot trading is more profitable than scalping. In fact, I've even tried scalping in the past and yes, we might not make losses but because of the fees, that is something that beats us.
I tend to agree with this. Stop-loss(SL) is to avoid further loss, not a strategy that you can use to gain profit.
This is very useful when you're in day trading, it very crucial there when it comes to making a profit.
Through this stop-loss even though you're in scalping and spot trading still is very useful.
There are a bunch of strategies that you can use but it seems the most important thing is SL.
