Successful traders use wide stops because they know the
natural daily price fluctuations can stop them out before their positions get a chance to take off in their favor.
You can't survive without a stop loss, but they can, or at least they can for much longer than you or I and this is why day trading is dangerous; because traders put very small / tight stop losses on their positions they often get stopped out by normal
daily price fluctuations in the market.
If a market reached
its daily price fluctuation limit, a «limit move», it may be impossible to execute a stop loss order.
Australia is a natural resources nation so
the daily price fluctuations of our most important commodities are the pulse of our economic fortune.
Virtual currencies, especially Bitcoin and Ethereum (the two biggest), have significantly fallen off from their record - high prices, and
the daily price fluctuations are more in line with normal stocks.
In fact, I'd argue that the ability to see
your daily price fluctuations in bond funds significantly increases the behaviorally induced risk of short - termism in bonds.
You shouldn't be bothered with
the daily price fluctuations in the market.
While most bitcoin investors obsess over
its daily price fluctuations, he says BTC prices are the most boring thing about the budding virtual currency market.