Trading brings lots of risks. Setting a stop loss is one of the most important things you can do to protect your money when trading. It helps you lower the loss if a trade doesn’t go well. You can avail yourself of the stop-loss tool using an AI trading app. We suggest you use NWealth for this purpose. It not only serves to control your risks but also offers other valuable investment tools. With the NWealth trading platform, setting up a stop loss becomes easy, even if you’ve just started trading. This article will help you explore how to use the stop loss tool on the app and how to use it wisely.
Step-by-Step Guide to Placing Stop Loss on NWealth App
New to If you’re new to trading, you may be worried about its complicated and risky nature. But you do not need to worry about your money when you are trading with NWealth. Placing a stop loss on the NWealth app is simple, and you can easily do it. Here’s how:
Log in to the NWealth App
Launch the app and log in to your trading account. Ensure your internet connection is stable before you begin.
Choose the Asset You Want to Trade
Pick the stock, crypto, or currency pair you want to trade. You can look through the listed choices or simply use the search bar to find what you need.
Tap on “Trade” or “Buy”
After selecting your asset, click the “Trade” or “Buy” button to begin placing your order.
Enter Your Investment Amount
Type in how much you want to invest in this trade.
Set Your Stop Loss Level
Look for the “Stop Loss” section in the trade setup. You’ll see a field to enter a price or percentage. This is the amount you are consenting to lose in case of a failed trade.
Confirm the Trade
Once you’ve reviewed your setup, click “Confirm” to place your trade with the stop loss.
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How to Use the NWealth Trading Platform’s Stop Loss Feature Safely
Stop loss helps you manage your risk, but only if used correctly. Here are a few ways to use the stop loss feature on NWealth smartly and safely:
Don’t Set It Too Tight
If your stop loss is too close to your buy price, you might get stopped out from small price moves. Allow your trade sufficient flexibility to account for normal market fluctuations.
Don’t Set It Too Loose
At the same time, you shouldn’t set it too far either. If it’s too wide, you might lose more than you intended.
Review and Adjust
Market conditions never remain consistent. You can edit your stop loss according to the market using NWealth. You can move it up it if you see your asset rising. This will secure a profit.
Match It with Your Risk Level
Decide how much you’re okay with losing on a trade. Most beginners stick with 2% to 5% of their trading account for each trade.
Stay Curious
Use NWealth’s demo account to practice different stop loss levels. You’ll get better with experience.
Best Stop Loss Strategy for Beginners Using NWealth Platform
NWealth is built for both new and well-versed users. Beginners can benefit from the following useful initial settings:
Percentage-Based Stop Loss
This is the most beginner-friendly option. Decide what percentage of the trade value you’re okay with losing. Set your stop loss at that level. For example, if you invest $200 and want to risk 5%, set the stop loss $10 below the entry price.
Fixed Dollar Stop Loss
Choosing a fixed dollar amount as your risk appetite is better than fixing a percentage. If you can afford to lose only $15 on a trade, set the stop loss accordingly.
Support Level Strategy
Many traders look at past price levels where the asset bounced back. These are called support levels. You may place a stop loss slightly below that level, allowing for natural price movement while still managing potential losses.
Trailing Stop Loss
This is an advanced but helpful feature. As the price goes up, your stop loss moves up too. This saves your profits while allowing your trade to remain open for longer.
Time-Based Stop Loss
This is more of a manual strategy. You set a time frame for your trade to work. If the price doesn’t move in your favour in that time, you close it, even if you didn’t hit the stop loss.
Why Setting a Stop Loss is Necessary
Many traders, especially beginners, skip using stop loss because they think they can watch the market. But the truth is, markets move fast. You can’t always be online to react.
A stop loss acts like a safety net. It keeps your losses under control without needing your full attention. It’s one of the best habits you can develop in trading. NWealth’s platform makes it easy, so there’s no reason to skip it.
Not using a stop loss can cause you to lose more than you planned. One bad trade can wipe out many good ones. With a stop loss, you have better control over your trades.
Learn by Practising on the Demo Account
NWealth offers a free demo account. If you’re unsure how to set a stop loss, try it in demo mode first. You can practice with fake money and learn how the stop loss works. It’s a great way to gain confidence without any risk.
Try different strategies, percentage-based, support levels, or even trailing stops. Watch how your trades react and learn what works best for you. After you have gained enough confidence, you can start trading live.
Conclusion
The stop loss feature on the NWealth trading platform is a must for anyone who wants to trade smartly. It’s simple to set, even for beginners, and can save you from large losses.
With this guide, you now know the step-by-step process to place a stop loss on the NWealth app. You also understand how to use the stop loss feature safely and the best stop loss strategy for beginners using the NWealth platform.
Use stop loss in every trade, and you’ll protect your money while giving yourself a better shot at success. Trading can be made easy if you are just prepared. Let the tools like NWealth do the hard work for you.
