Welcome to Day 5 of the 10 days of trading course from BlackBull Markets. Today we will be discussing why not setting a Stop-Loss or Take-Profit on every trade is a grave mistake.
The importance of a Stop-Loss and Take-Profit
One of the most common mistake new traders make is forgetting or purposefully not setting a Stop-Loss and a Take-Profit on every single trade.
When set, a Stop-Loss triggers automatically at your pre-set level, preventing you from losing too much of your investments on a particular trade if the market moves against you.
Similarly, a Take-Profit is another automatic trigger, expect this time it locks in a profit. A Take-Profit is important for risk management and ensuring you stick to your trading strategy.
To learn more about the importance of setting a Stop-Loss and a Take-Profit, we have prepared a quick instructional video that illuminates why not utilising these tools is a novice’s mistake.