STOP LOSS - what is the point? 🍖 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:

“If 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!

“ 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.

“Stop-loss could potentially cause the loss “

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 “X” the take profit will always be “3X”. 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!

Sincerely,

Your trader

SAVINSKYI

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