Reason for stop loss if you know price will return after some time?

[m3x_19]

Reason for stop loss if you know price will return after some time?

As much i understand intention to use a stop loss with long trade is that we expect that breaking that level will show further lower levels and we shall get opportunity to buy on those levels. Is there any other reason in your view?

It is still recommended for traders to use stop loss to prevent further loses, because we don't know to where and until what level the price would move. Hoping that the price would go back to our direction while holding a great minus is not good for traders psychology

[shinde]

For small accounts stop loss is much important. It prevents you from margin call and bankruptcy. But if you a big account then you can go without stop loss. The only purpose of stop loss is to prevent from big loss. It also happens many times that the price just touched the SL but you know SL aalso have many advantages as i mentioned.

[alam]

Stoop loss is very essential part of trading and like equal to insurance system but in this way you can save your balance in wrong situation its very good and safe thing its saves you investment for you feature trading.

[sarwars]

we should learn how to hold our winnings by minimizing the losses . if we can stay in the market then we will make profit and It simply means that those going with lower leverage no need to bother about stop loss.

[fxquest]

Usually stop loss are set below the level which once broken prices slips down further fastly, and if we trigger stop loss, it would let us enter at more attractive level so reducing the losses and turning trade in profit faster.

[muhammadatif]

Pehli bat to hey hai keh ager aap samajhty hain keh prices down hon gi to buy lyny ka koi jwaz nahi banta lykin phir bhi ager aap ly lyty hain to stop loss option bohat useful hai is sy aap apny aap ko bary loss sy bcha sakty hain.

[aadrika]

As much i understand intention to use a stop loss with long trade is that we expect that breaking that level will show further lower levels and we shall get opportunity to buy on those levels. Is there any other reason in your view?

The major reasons why stop loss is used is to first of all ensure that a bad trade does not get worse. Also, it is used to protect our equity. One more reason is that we are not always going to be at the trading terminal observing our trades so the stop loss will automatically stop our trades at a level that we consider to be bad enough.

[niks]

Thats true , many times this happens that market hits your stop loss first and then moves back to your target and you miss the position.
Solution to this is , if you are sure about trend then use higher stop loss .
Main purpose of using stop loss is not let the market cut down your all equity. If market suddenly moves 100+ pips opposite
then stop loss will protect your account from getting null.

[hima]

taking stop lose on our trades though we know that price will be back but its main reason is money management that how much lose can i bear in this trade every big trade planes hi money management
and for small trader they have a shortage of capital there for they the stop lose on there trades to save there self from a big lose

[nirale]

Also we do not know that if the price will come back or not or even go further in reverse direction.This is the reason we put stop loss to our trades as markets are unpredictable and risky.