Stop-loss will always disconcert you. It will never make you happy.
But, you have chosen the path of a trader, and trading is always associated with a certain degree of risk.
STOP-LOSS - is your decision of how much you are willing to lose.
You always must be willing to lose.
There is a saying “You have to pay it forward to get a two-fold” That is specifically true in the case with the STOP-LOSS.
Most of the novice traders, and even seasoned ones, me included, experienced this situation; they set up a stop-loss. The STOP is triggered and immediately after that, the market turns around in the desired directions. If it is happening a few times in a row, a trader starts to hate this important tool for risk management. Here is what the trader thinking:
‘’I have not only messed up a good trade but also lost money”
It is important to understand when using a STOP-LOSS, it has to be set up properly. The price points of the STOP must be determined correctly.
Most of the time you can read or hear “Set up a STOP-LOSS behind certain level or behind extreme points”. But what is the level or which extreme point is not clear.
We will talk about it in the next post…
Sincerely,
Your trader
SAVINSKYI
My stats https://savinskyi.com/rankings (Register to follow)
My Telegram @Jeck_SAVINSKYI