LIVEGood morning 🌞 followers.!!!
🚨Remember that stop loss is very important..🚨
✅Percentage-Based Stops:
This is the most common type. Traders might set a stop loss at a predetermined percentage from their entry point. For instance:
1-3% for more conservative traders or those with larger accounts.
5-10% for more aggressive traders or those with smaller accounts.
✅Volatility-Based Stops:
Some traders use the asset’s volatility to set stop losses. The Average True Range (ATR) is a common tool for this. For example, a trader might set a stop loss at 2x the ATR below their entry for a long position.
✅Technical Analysis Stops:
Technical traders might set stop losses at specific levels based on chart patterns or indicators. For example, below a major support level or moving average.
✅Time-Based Stops:
If the trade doesn’t move in the desired direction after a certain amount of time, the position is closed.
✅Dollar Amount Stops:
Some traders decide on an absolute dollar amount they’re willing to risk on a trade rather than a percentage.
✅Be Consistent:
Whatever method or percentage you choose, be consistent in its application.
Always Use Stops: Almost all successful traders emphasize the importance of always using a stop loss.
✅Avoid Moving Your Stop:
It’s generally advised not to move a stop loss further away after the trade is initiated. Moving stops can lead to larger losses than initially intended.
Good luck everyone
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