Limit price and stop loss are important aspects of trading. Setting too tight a stop loss also would be risky. This comes with experience. Especially when I was trading Brent Crude, Stop loss was important, there were 8$ move which is typically 800$ moves in a day or during a news. Most of us do not have money to weather such a storm.
Think about this, there is a difference between bid and ask price. If you put in limit order price without stop order price and bad news about the stock comes in, the stock is going to get sold off leading to lesser selling price and even lesser bid price. If you do not have Stop Loss order, you end up with huge loss.
On the speculative side, the stock looks like Suzlon.
Think about this, there is a difference between bid and ask price. If you put in limit order price without stop order price and bad news about the stock comes in, the stock is going to get sold off leading to lesser selling price and even lesser bid price. If you do not have Stop Loss order, you end up with huge loss.
On the speculative side, the stock looks like Suzlon.
