Is a Stop Loss guaranteed to prevent losses?

No. A Stop Loss is designed to help limit potential losses by closing a position when a specified price is reached. However, during periods of high volatility or low liquidity, a trade may be executed at the next available market price, which may differ from the requested level.

Should every trade have both a Stop Loss and a Take Profit?

There is no single approach that suits every trading strategy. Many traders use both as part of their risk management plan, while others may use different methods depending on their objectives and market conditions.

Can I change my Stop Loss or Take Profit after opening a trade?

Yes. Depending on your trading platform and strategy, both orders can usually be adjusted after a position has been opened. Any changes should be based on a well-defined trading plan rather than short-term emotions.

What is the main difference between Stop Loss and Take Profit?

A Stop Loss helps define the maximum level of risk a trader is prepared to accept if the market moves against a position. A Take Profit defines the price at which a trader plans to close a position after a trading objective has been reached. Together, they help support a more structured approach to trade management.