It is very helpful to set up the Stop loss in every trade, because in that case you won't lose money that you can not afford. Also it is not necessary in that case to be in front of the computer during the whole trade. Your position will close automatically when it reach the Stop loss level and you won't lose all of your money.
I think if you only invest a few amount of your assets, sometimes you may set S/L according to the changes of market, instead of a fixed S/L.
Just Antony said, the SL has to be predetermined before opening the trade.
For MT4 users, you should always place your SL together with the order
I think we should have a stop right after opening a position, just to protect ourselves from crazy moves of the market (like the JPY moves after Japan tsunami).
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Is it right to set up S/L after opening the position or you need to check first the market movement if it goes down before setting up S/L to minimize losses.