Rigid, fixed stop-losses on volatile ASX-listed CFDs often lock in losses that a slightly wider or volatility-adjusted stop would have avoided.
A stop-loss is not automatically good risk management. On volatile ASX-listed CFDs, a rigid stop placed at an arbitrary fixed distance can be little more than an instruction to sell into normal market noise. The result is not disciplined trading; it is a steady leak of small, avoidable losses. What everyone believes The conventional rule…