difference between stop loss and trailing stop loss nad how to use it;

difference between stop loss and trailing stop loss nad how to use it;

Assalam alaikum dear members! umeed ha ap sb thk hon gy or apki trading achi ja rahi ho ge. .Aj hum stop loss or trailing stop loss k difference ko discuss karen or ye h dekhen gy k in dono ko kaisy use kia jata ha. ye dono tools forex main loss se bachny or profit ko save karny k lye lazmi hain. What is Stop LOSS? Dear members stopp loss 1 limit hoti ha jo k apko zyada loss se bachati ha.Ye limit ap trade lgaty wqt bhi set jr skty hain or trade lgany k bad order modify kr k bhi lga skty hain. Agr ap sell ki trade lety hain to ap k entry point se opr stop loss hota ha or agr ap buy ki trade lety hain to apka stop loss ap ki entry point se nechy ho ga. aik smjhdar trader hmesha trade karty hovy stoploss use karta ha or yhi uski kamyabi ka raaz hota ha. or apny account ka sirf 2 to 4 perecent hi risk karen es se zada na karen. how to use stop loss: Dear members jb ap trade lgaty hain to us se phly apko market ki support or resistance ko dekh lena chahye ta k ap apna stop loss or profit target set kr skn. jis jgha ap entry lety hain us k nechy koe strong support dekhen or us support py ya us k thora nechy apka stop loss hona chahye. or stop loss lagaty hovy market ko phly analyse kar len agr apka stop loss market ki range main ho ga to es k hit hony k chances zada hoty hain es lye stoploss hmesha market ki range se bhr rakhen. What is Trailing Stop loss? Dear members trailing stop loss bhi dosry simple stop loss ki 1 linit ha frq itna ha k wo simple stop loss apko zada nuqsan se bachata ha. jb k trailing stop loss ap k profit ko secure karta ha. Bht bar ap k sth aisa hota ho ga ka apki orofit wali trade loss main chli jati ho ge or ap ptofit k bjay usy loss main close krty hn gy.Es situation se bachny k lye apko trailing stop loss use karna chahye. trailing stop loss ki waja se hum trade ko zada hold b kr lyty hain jski wja se hamen zada profit hony k chances hoty hain. How to use Trailing Stop loss? Dear members trailing stop loss ko use karny ka treka ye ha k jb ap koe trade lgaen to us k profit main any k bad apna stop loss entry point se agy kr dn taa k jb market agr reverse b ho jy to apki trade profit main close ho. jesy jesy apki trade chlti jy agy barhti jy profit main ap apna stop loss opr karty jaen. agr ap desktop py trade karty hain to wahan py esko use karna zada asan ha wahan py pip k hisab se stop loss set kr skty hain. jes k agr ap 100 pip ka trailing stop loss lgaen gy to apki trade k barhny k sth sth apka trailing stop loss opr barhta jyga or trade or stop loss main 100 pip ka difference rhy ge or agr market trailing stop loss ko hit kry ge to apki trade profit main close ho ge.

A "stop-loss" and a "trailing stop-loss" are both risk management tools used in trading and investing to limit potential losses, but they work differently and are applied in different situations. Stop Loss (Static Stop Loss): A stop-loss order is a predetermined price level at which an investor or trader decides to sell a security to limit their potential losses. It is a fixed price set by the trader, typically below the current market price for a long position (or above for a short position). When the market price reaches or falls below this predetermined price, the stop-loss order becomes a market order, and the security is sold at the best available price. Stop-loss orders help protect against large losses by enforcing discipline in exiting a trade when it's not going as planned. It does not automatically adjust as the market price moves, so if the price rises after the stop-loss is set, it won't protect any gains. Trailing Stop Loss: A trailing stop-loss is a dynamic order that adjusts itself based on the movement of the market price in a favorable direction. It is typically set as a percentage or a fixed amount below the highest market price reached since the trailing stop was initiated. If the market price moves in a profitable direction, the trailing stop will follow it and maintain a constant distance (percentage or amount) below the highest price. If the market price reverses and falls by the specified percentage or amount, the trailing stop becomes a market order and executes, locking in profits. Trailing stop-loss orders are used to protect profits in a trade as they automatically adjust upward with rising prices. How to Use Them: Stop Loss: Use a static stop-loss when you want to limit potential losses in a trade and have a specific level at which you're willing to exit if the trade goes against you. For example, you might set a stop-loss at 5% below your entry price for a long position. Trailing Stop Loss: Use a trailing stop-loss when you want to protect profits in a trade that is moving in your favor. This tool is particularly useful in trending markets. For example, you might set a trailing stop at 5% below the highest price reached since you entered a long position. As the price rises, the trailing stop will adjust and lock in profits if the price reverses. Remember that while both tools can help manage risk, they are not foolproof, and there are risks associated with market volatility and gaps in price. The choice between using a static stop-loss or a trailing stop-loss depends on your trading strategy, risk tolerance, and market conditions. It's essential to thoroughly understand how these orders work and to use them appropriately to manage risk effectively in your trading or investment activities. Additionally, consider consulting with a financial advisor or doing further research before using these tools in your trading strategy.