Why Stop Losses Actually Increase Risk

Why Stop Losses Actually Increase Risk

In this video we are going to to discuss stop losses, why they are a bad idea and why they actually increase risk, despite what pretty much everyone says, they are a bad idea.

Small down movement lock in losses when the shares might rebound quickly.

When shares gap over a stop loss, you might not notice.

They create a false sense of security, especially with the threat of gapping, you might not pay attention as closely to news and your portfolio if you feel safe with your stops.

Use stop losses at your own peril, in most cases they increase risk, lock in losses and give you a false sense of security