It is one of the most important elements of strong and successful capital management, and it allows a trader to preserve his money and his capital within the financial markets. The way in which the stop loss order is placed varies from trader to trader.
Traders determine loss orders based on the strategies they use. A stop loss order will return at least 200 points if the trader's strategy depends on achieving long-term goals, i.e., he works through the swing.
The stop loss order, however, will be completely different if the trader uses the scalping method since the trading goals in scalping are also few and do not exceed 100 points.
In addition to setting goals and clearly defining the stop-loss order, capital management also involves setting goals, as trading without a stop loss order could result in the loss of the entire capital, which is why capital management is the trader's primary responsibility.