Trading Stop Losses Are a Necessary Evil

Today I want to show you what happens when things don’t go according to plan and stop losses get triggered.

This is a trade which my stop loss set triggered an automatic exit of this trade. Result?

Capital loss realised and immediate reversal after stop loss triggered sell off.

Although stop losses are rare, they do happen and they are part and parcel of trading. What it does give me though is a sense of comfort knowing that my maximum point of loss is already known from the very start and hence losses will never blow out of proportion.

Automatic conditional stop losses from day of entry are especially valuable when you have many positions on and automation allows you to never forget any positions you ,may have on ‘accidentally’. Believe me, this happens.

My emotional response; I don’t like them but I know for a fact they are a necessary evil which keeps me safe in the long run.

MRVL Trade Completion - 27.4.15


Result of this trade;

Trade Exit –MRVL, Marvel

Stock Exit @ $13.77 on 27 April 2015 (Blue Shade).

Stock Original entry @ $14.97 26 March 2015 (Green Shade).

Total Return on Investment (ROI) of -7.97% or -90.94% annualised.

Duration 32 days.

Reason for exit; 
Conditional stop loss triggered exit.


If you like this post, can you do me a favour and click the ‘Like’ and ‘Share’ buttons to spread the message!

How to Double Your Returns in 10 Simple Steps

Your information is 100% secure with us and will never be shared