Hi I'm planning on buying some US shares for the long term. Of course there may have some spikes and and I was wondering on a long term investment a Stop Loss is needed.

As US is in a bull market the stock in question should also rise though I would expect some spikes which could cause the stop loss to trigger prematurely.

Wanted to know if many investors put in stop losses under these conditions.

  • A Stop Loss order is used to protect yourself from loss of share value. You use it at the price at which you do not want to experience further loss. – Bob Baerker Aug 3 '18 at 12:51

Typically stop losses are not needed (or even used) in long-term holdings.

If you are concerned about taking short-term losses you could use one, but perhaps the better alternative is to make a safer investment that has less swings if you are concerned with volatility.

Ultimately, I don't think there is a correct answer to this. I would rarely put a stop-loss in a position, but I know people who use them regularly.

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