WHY YOU SHOULD GET INTO THE HABIT OF INSTALLING A STOP LOSS ORDER

WHY YOU SHOULD GET INTO THE HABIT OF INSTALLING A STOP LOSS ORDER.

                As a new trader, you will be unaware of how fast the price can move sometimes.  What causes it to move with such speed will remain a mystery.  Maybe a news release.  Maybe a very large order or orders.  Maybe something may happen within the another country.  No matter the reason, the price can move FASTER THAN YOUR REFLEXES.

                So the boring time consuming drill of putting in a stop loss order than may seldom be needed but is a must, because of those occasional times when price can move fast and far and really hurt you.  Such an order will be a market order, which means you will be filled at the first available price after the price hits your order.  You may or may not be filled at your stop loss price in a fast moving market, but you will be out of your trade at some close price. 

                I get lazy sometimes and fail to do it, I will admit, and I pay for my laziness from time to time.  Be safe.  Get in the good habit of putting in a stop loss on every trade.