Hello, this is an – automated – message for you! Do you like losses? Probably the answer is: NO! Nobody wants to lose money, so all traders try to avoid losses as good as they can. And what is the one thing that is promoted as the best way to avoid them? It is the stop loss. We all use it and there are several options for it. For example you can use a position based, fixed stop loss. The advantage of a position based and fixed stop loss is, that you can set it right when you open a new position. So with a position based and fixed stop loss you avoid the risk that you might have no stop loss when your computer goes offline. Or you could use a trailing stop. A trailing stop is a good way to secure profits and ride a trade as long as an existing trend is alive. Another option would be a break even stop, that is activated as soon as you are in a profitable zone. It will help you to avoid position based losses. With automated trading you can compare the different options and pick the option that promises the best results. But probably right now you do, what you always did. And I bet the most of your losses are produced by your own stop loss! It is easy to find out if I am right, all you need to do is to count your losses and find out, if you have decided to close the position with a loss – to avoid a bigger loss. What do you think is the reason why you do that? Well, probably it is fear! You fear losses. You want to avoid them. Because losses don’t feel good. But we want to avoid bad feelings. So what do we do? We open a position and hope for the best, but when we have an ongoing loss, we want to get rid of the pain. That is pure human psychology and that is why we close losses. You probably wouldn’t do that with injuries. If you accidently cut yourself into a finger while you are chopping carrots, that might also be a bad feeling. And I think you never would come to the conclusion that it is a good idea to cut off the whole finger to avoid more pain in the future. But when it comes to finances, people do things that they never would do in any other part of life. That is one reason that the best role in the financial market would be to be a broker. Brokers earn whenever you do anything with a position. They make money when you close a position and for them it doesn’t matter if you make a profit or a loss. All you need to do is to trade. A lot of people trade too big positions with too less capital. So they get frightened when a big draw down occurs. Now what? Could you stand the bad feeling of a possible loss – maybe not only for days, but for weeks? Probably not! You want to get rid of the pain, as fast as possible. Humans don’t like to wait for the results of a final exam. Humans don’t like to wait for the results of a physical examination. And humans don’t want to wait for the results of a potentially bad trade. The evolution gave us two things that cause all of our actions. We want to gain pleasure and we want to avoid pain! When it comes to trading, both things are available at any time. In my courses I often told the course members that I consider trading to be psycho terror. And you also might have heard that over 80 percent of new traders lose all their money within six months. Yes, that includes people like you and me. It includes doctors, lawyers and average people. People act based on their emotions and try to justify their emotional behaviour with logic afterwards. If you think that this isn’t true, just refuse to move your car for 10 seconds after the traffic light turns green. Probably you will find that the person behind you becomes furious before the 10 seconds are over – even on a sunday afternoon when nobody is in a hurry. One of the best ways to avoid losses is rarely mentioned by anyone. It is a way to not only avoid losses, but it also helps you to use your trading capital more efficiently. Most traders don’t even know that it exists! So how could you do that? Is it a stop loss that is based on magic algorit...