Among traders, many people ignore this and the effect is very bad on the trading portfolio.
And as this continues, many people will give in to this industry.
The thing in question is StopLoss. Many traders ignore it and many also trade with full margin without StopLoss and eventually burn the account.
According to Franki Law, an FX trader from Hong Kong states:
"Many when the MC occurs after a loss in 1 position, they will make a deposit and will make a random trade, without StopLoss, and will usually open a lot larger than the previous position. This is very dangerous and at the same time will cause multiple scorched accounts. Because of what? There is no StopLoss and want to make a big profit at once to cover losses before. ”
So, set StopLoss so that the account is not eaten by the market, control risk management, and make decisions in calm emotions.
Despite being hit by StopLoss, at least not MC.
