I recently started my options trading journey and chose Robinhood because of its easy-to-use interface and my prior experience with the app.
The main challenge I’ve run into is setting my stop loss properly to avoid losing a large portion of my investment or profits. I understand that stop losses aren’t foolproof and can’t guarantee I won’t lose money, but I want to get to a point where I fully understand how to use them with confidence.
So far, I’ve placed four trades and I’m 2–2 (two wins, two losses). The biggest issue I’ve noticed is setting a stop loss in real time while prices are constantly moving, and making sure the order actually fills when needed.
Can anyone explain or share how they manage stop losses effectively during live market conditions? (explain it to me like you’re explaining it to a five year old child.)