How can you protect your investment from losses using stop loss?

When investing money today, you cannot be one hundred percent 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 do not have time to react to a price drop and sell the asset with quite large losses.

Imagine that you purchased a gold bar, and gold began to fall in price, until information about the fall reaches you, and until you sell the metal, it may take a long time, which will only increase the loss.

To minimize losses, it is advisable to use the opportunity to automatically complete an unsuccessful transaction, that is, use a stop loss.

It is clear that this tool cannot be used for all assets, but in most cases it can help reduce losses.

The main condition, in this case, is to make investments through a trading platform, in which it is possible to use not only stop loss, but also other automatic orders, such as take profit or trailing stop .

Yes, you will not be able to buy real estate through the trading platform, but you can purchase shares of funds that invest in this segment of the market, and you can just as easily open purchase transactions for other securities.  

In addition, investments in such investment assets as gold, platinum and silver are available, and the overhead costs for opening transactions are many times lower than if you carry out transactions in real life.

I myself have been buying and selling gold through a trading platform for a long time; its capabilities and low spread allow me not to wait for several years, but to earn money even on small price fluctuations. And there are no problems with storing the metal itself.

If gold is falling in price, which has been happening a lot lately, you can set up a buy order that will trigger as soon as the price drops to the level you set. take profit orders , they will help not only protect the transaction from large losses, but also close it with the planned profit.

 

Trading gold through the trading platform - https://time-forex.com/vopros/pokupka-zolota-na-birzhe

You can act similarly with securities or other assets that can only be traded through an exchange.

Once you appreciate all the benefits of working through a trading platform, you will no longer have doubts about where to invest in real life or through software.