STOP LOSS - what is the point? πŸ– Part 2

STOP LOSS - what is the point? πŸ– Part 2

At what point do I set a STOP-LOSS? Let's continue talking about Stops and about limiting the risk exposure.

Let’s get one thing straight; give up the thoughts like:

β€œIf I set a Stop order, the whales will squeeze me out of my position anyway ”

If whales have entered the position and decided to drive the market, they are not interested in your Stop-loss at the very beginning of the market move. Just set your Stop-loss, don't hesitate!

β€œ I will set a stop loss, It will be triggered, and then the market will change in the right direction.”

STOP! We will talk about it later. I will show you how to re-enter the position in that situation. It is not a valid reason to skip setting the Stop-loss.

β€œStop-loss could potentially cause the loss β€œ

WTF! When I am creating a trading strategy the loss and profit are always going hand in hand. The risk of loss is always present. And if the risk of loss is β€œX” the take profit will always be β€œ3X”. Think about it!

You might have some other reckless ideas in your head, and some BS excuses why you should not use a Stop-Loss. But, trust me on that: you always should. I have been trading for many years, and limiting the losses should be the number one priority in your trading strategy.

STOP-LOSS must be set, where it must be set, and nowhere else …

Of course, it is best to set a STOP LOSS behind the level, especially if this level is confirmed by a false breakout ... Then we set it behind the extreme point of a false breakout. This will be the best option.

The STOP can be hidden behind the LOW or the HIGH "Pivot" bar, which is a bar (CANDLE) with a high volume and a great outcome.

Usually, it is a good idea to set a STOP at the extreme point that was formed as a result of the many traders getting liquidated, especially when it is a well-known fact. The best way to see it is by looking at the 1D chart.

Do not set a STOP, just to set it. Use common sense.

STOP should be your starting point when calculating your future trade. It is very important. Approach it responsibly!


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