Have you ever wondered:
I'm sure there are reasons for all of these, but on the surface they don't seem to make sense.
What about stop losses, do they make sense?
We often hear the trading rule of 'always use a stop loss', no matter what, use it everywhere, but…
Does it actually make sense to ALWAYS use a stop loss?
Or are there occasions when using a stop loss DOESNT make sense?
And if so, how do you handle that? How do you manage your risk?
In this week’s trading thought, we’re going to review a chat with Dr Ernie Chan about stop losses, and we discuss these exact points, so let head on over to Ernie and find out if it makes sense to ALWAYS use a stop loss.