Know About Best Trailing Stop Loss Percentage – Importance of Stop Loss
The principles of risk management are most important for a trading plan. The use of stop loss is an important concept in risk management. Stop loss is the automatic execution of the order when the trade goes in opposite direction and loss is incurred. The stop loss prevents the traders from incurring heavy loss. The stop loss can be applied to both the buy and sell trades. All big advisory firms provide buy and sell calls with proper stop loss levels while providing Intraday Trading Tips.
It is believed that the best trailing stop-loss percentage to use is either 15% or 20%. Suppose you use a pure momentum strategy, then a stop loss strategy can help you to completely avoid market crashes, and even earn you a small profit while the market loses 50%.