Why I Don’t Use a Stop Loss 🚨
Many ask why I don’t use stop loss on my trades. Well, here’s my approach: I don’t rely on conventional stop losses but instead use *emotional stop loss*. 💡
Here’s How It Works:
🔹 Risk Management: My stop loss is set to 1%-3% of my capital. For example, if my capital is $1,000 and my stop loss is 1%, then I’m risking $10 per trade.
🔹 Limit Orders Strategy: I place limit orders at resistance levels. When my limit order is triggered, it automatically drags my breakeven level to the current price.
- Breakeven Level: This is the price point at which there’s no profit or loss ($0.00).
This strategy gives me more confidence not to rely on traditional stop losses, as my breakeven adjusts dynamically with the market.
Exiting a Trade 🚪
If all my limit orders are hit and the price keeps moving against me—approaching my emotional stop loss—or the gap between the breakeven and current price becomes too wide, I’ll exit the trade.
Key Takeaway: Never use stop losses aggressively. Instead, trade strategically and professionally! 🧠📊 [ let use to create youtube video script, then twitter post