Hey everyone its @chahir99 , in this post im gonna give you tips for do's and don't when it comes to setting stop losses on your trade , so without further ado let's jump right in :
1
Give the market time to prove you right :
I think too many people when they start trading , they're so worried about losing money that they end up setting really tight stop losses ,and i think it's far more sensible to give yourself a bit of room maybe trade a bit smaller but have a wider stop loss .
2
The second mistake people make when setting stop losses is they base it purely on a monetary values , they might trade the same size every time and they think well i only want to lose 20$ or 30$ on this trade .
The market doesn't care how much you're going to lose.
I think the correct thing to do, is look to place at an obvious point on the chart , so if the market drops below a certain level if you're buying , or goes above a certain level if you're selling , that's where you come out of the trade .
I hope this was helpful and you guys learned something and if you like it please up vote me and let me know what you think about it in the comment section.
Thanks for reading!
Thanks for following @chahir99 .
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