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Why automated trading stop losses are not always ideal
- qCOVET 11y agoRebound or no rebound, stop losses are phenomenal tools to limit the damage. Most often it would crater and annihilate, than rebound. I once got caught on the wrong side of the trade and couldn't get out. Luckily for the 'stop loss', it helped get me out of the market. The assistant call system (described in the article) might prove to be too slow to respond to cratering black swans that could wipe out a portfolio.