Problem With Stop Loss

[Newbie Trader]

Hi,

I'm placing a stop loss 2 ticks below where I think the bottom of the range is so that if the price goes straight through the stop loss will kick in. But in some lower volatility markets if a large bet comes in the stop loss does nothing and I have a large red on that selection.

Why this does happen? I thought the stop loss was supposed to act like a safety net?

Is it because there isn't much volume on these selections?

I'm trading pre off horse racing.

[TheTub]

This can happen if the price moves through your stop.

If your trigger is 2.5 for example and the price moves from 3.0 to 1.01 or thereabouts in one single bet (which can happen) then the stop will not fire and no safety net in the world will save you.

[RafterP]

Ok thanks.

Sort of defeats the purpose of using it then

[CaerMyrddin]

I rarely use stop losses and manage my positions manually, but when I always try to place it carefully so that will actually work. If you're trading iliquid markets you can only place them in boxes where there is enough money to trade off your position...

[Newbie Trader]

Ok thanks.

Sort of defeats the purpose of using it then

Thanks for what?

Back to the drawing board for me then!

Thanks for the tips guys