stop loss

How to Set a Stop Loss on a trade

How to Set a Stop Loss-A Stop-loss is a price level on a chart. A trader will accept the mistake and exit for a minor loss after a trade entry.
If the trade is right, a stop loss will place at the level where the price should not go. they lose too much money when a transaction doesn’t work out. Losses to a minimum in order to maintain a healthy risk/reward ratio, with losing transactions half or one-third the size of winning deals.

We determine Profitability by your risk/reward ratio rather than your victory rate. We set stop loss on a major technical level on a char.

How to set a stop loss on a trade:

  • A stop loss should be part of your trading strategy from the start, not after the fact.
  • Before you get emotional over accepting a lost deal, it’s best to set a stop loss.
  • If the transaction is going to work out in your favour, a stop loss should be placed at a price level where the price should not go.
  • We set stop loss on critical technical levels, not set on personal opinion.
  • Setting a stop loss based on a meaningful price level rather than a flat % loss from entry is preferable.
  • We Set a stop loss first, then we set position size according to the size loss you’re willing to accept if it’s triggered.
  • We set stop-loss on a level where a low risk is assume,To maximize your chances of success.
  • The optimal stop loss is, when the trade is first triggered, rather than waiting for a reversal, which usually results in a larger loss.

Stick To Your Plan

  1. If you don’t stick to your trading plan, you’re not controlling risk or remaining disciplined.
  2. The longer you wait to stop losing, the more difficult it will be to depart afterwards.
  3. Your position size should be smaller the further your stop-loss is from your entry price.
  4. Don’t let your ego force you to lose a lot of money because you don’t want to admit you were incorrect.
  5. Set your stop loss at these technical levels:
  6. A loss of a supporting trend line could be the stop loss for chart patterns.
  7. The loss of the preceding candle’s low could be a useful stop placement for candlestick chart trading.
  8. We use moving average signal to enter a trend.
  9. The cross under would be an initial stop loss when employing a moving average crossover signal.
  10. When entering an oversold 30 RSI signal, the loss of 30 RSI support would be the stop loss.
  11. When to take a stop loss is an explanation of how stop loss percentages should be considered when evaluating the risks of losing more than 1% of ones capital.
  12. A 100% position of your total trading capital allows you to take a 1% stop loss on your trade, which equals 1% of your total trading capital.
  13. A 50% position of your total trading capital allows you to take a 2% stop loss on your position to equal 1% of your whole trading capital.
  14. If you hold 25% of your whole trading capital, 1% of your trading capital is equal to 4 percent of your position’s stop loss.
  15. A 20% stake of your total trading capital allows you to set a 5 percent stop loss on your trade, equating to 1% of your total trading capital.
  16. A 10% stop loss on your position will equal 1% of your total trading capital if you take a 10% position to equal your entire trading capital.
  17. A 5% position of the trading capital you have available will allow you to take a 22% stop loss, or 1% of it.

How To Take Control Of Your Trading


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