Stops - Pros and Cons

Setting protective stops is an essential ingredient in any leveraged trading activity. This process can be done physically, by actually placing them in advance with your broker, or mentally, by deciding where a stop should be executed. Physically placing a stop may involve setting an alert with your software and watching the price action very closely. On the other hand, if you set the stop mentally, you may be focusing on one specific market and can immediately execute an order the moment the stop is reached.
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