Manual or automatic Stop Loss

[Tobi]

If we define Stop Loss when we create our order this is an Automatic Stop Loss. In turn, if we open our order without the Stop Loss set and manually execute the closing of the order in negative, this is a Manual Stop Loss.
There are “Non-technical issues”, in which some traders are of the opinion that by placing an automatic Stop Loss we are revealing to the Broker and to the Market our intentions. But nevertheless a Manual Stop Loss requires constant monitoring of the market. Another disadvantage of Stop Loss manual is that the trader must have the discipline and determination to execute Stop Loss. In these situations the Trader can be confronted with thoughts like: "Let it see if the market recovers a little more."The automatic use of Stop Loss guarantees the discipline and coolness that the human mind does not always allow.By weighing all these factors and especially for the less experienced it is clearly better to use an automatic Stop Loss.

 

[gwolf666]

An automatic Stop Loss is set when creating the order, while a manual Stop Loss happens when the trader closes the position at a loss without having predefined it. Some argue that automatic stops reveal intentions to brokers, but manual stops demand constant monitoring and strict discipline. The risk with manual execution is hesitation, as traders may delay closing a losing trade hoping for recovery. For less experienced traders, automatic Stop Loss is the safer and more disciplined choice.