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/biz/ - Business & Finance

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11623317 No.11623317 [Reply] [Original]

can someone explain stop losses to me?
isn't it literally just selling low?
how is that a good thing?

>> No.11623330

>>11623317
It's not a good thing, it's just risk management

>> No.11623337

You buy at 10, it goes to 15, you set a stop loss at 12.

>> No.11623343

>>11623317
Selling low is better than selling really low.

>> No.11623346

>>11623317

You set a stop-loss so that when the price gets to that point you automatically sell. Imagine buying something at 20 units and it goes to 25. Well that's good and you want to ensure you keep some profits, so you set a stop-loss which basically will auto-sell your position at whatever you set it to (ex. 22) to lock-in some profits.

>> No.11623349

DONT USE STOP LOSSES
If you're not going into absolute shitcoins, you will get stoploss hunted and be forced to sell before the next leg up. Don't be whale food, don't use stop losses.
If you put money into shit that can go to 0 at any time, feel free to use them though.

>> No.11623369

>>11623317
Pretty good after a great run to secure your profits and make sure your gains are realized.