How to protect your investments from losses using stop-loss orders
Today, when investing money, you can't be 100% sure that tomorrow the situation will not change and seemingly profitable investments will turn out to be unprofitable.
Therefore, you constantly have to review your investment portfolio, but this does not always save you from losses.
In most cases, you simply don't have time to react to the price drop and sell the asset with quite large losses.
Imagine that you bought a gold bar, and gold began to fall in price. It could take a long time for information about the fall to reach you and for you to sell the metal, which would only increase your loss.
To minimize losses, it is advisable to use the option to automatically close an unsuccessful transaction, that is, use a stop loss.
The main condition, however, is that investments must be made through a trading platform that allows for the use of not only stop-loss orders, but also other automated orders, such as take-profit orders or trailing stop orders .
Yes, you won't be able to buy real estate through the trading platform, but you can buy shares in funds that invest in this market segment, and you can also easily open buy transactions for other securities.
In addition, investments in investment assets such as gold, platinum, and silver are available, and the overhead costs for opening transactions are many times lower than if you were to conduct transactions in real life.
I've been buying and selling gold through the trading platform for a long time now. Its capabilities and low spreads mean I don't have to wait years, and can profit from even small price fluctuations. And there are no problems with storing the metal itself.
If gold prices fall, which has been happening frequently lately, you can set a buy order that will trigger once the price drops to your set level. Setting stop-loss and take-profit will help you not only protect your trade from large losses but also close it with your planned profit.
Gold trading through a trading platform - https://time-forex.com/vopros/pokupka-zolota-na-birzhe
The same can be done with securities or other assets that can only be traded through the exchange.
Once you appreciate all the benefits of working through a trading platform, you will no longer have any doubts about whether to invest in real money or through software.
