What to do when the market hit your stop-loss🤷

I'm sure you've experienced this before: you entered a trade with your entry price, stop-loss and take profit properly set-up but unfortunately, the market hit your stop-loss. 🤡

The concept of setting a stop-loss is very subjective. Some traders see stop-loss as a very helpful feature to protect their capital. However, other traders also are of the view that when you set a stop-loss, you become a victim of stop-loss hunting.

If you believe in setting stop-loss for your trades, then this is what you could do when the market hit your stop-loss:

1. Don't rush to enter a new trade with the hope of recovering your losses quickly. This could lead to more losses.

2. Review your trade to find out where you got it wrong and make the necessary adjustment to correct the wrongs. Sometimes, you can get everything right with your setup and still the market will hit your stop-loss. Don't take it personal.

3. Be patient and wait for a retest at the zone where the market hit your stop-loss to see how price will react at those key levels before you make a possible entry.

4. Make sure you don't set your stop-loss too close to your entry price.

In conclusion, the stop-loss feature is a very useful tool for day trading. Irrespective of your opinion about stop-loss, I respect your decisions on how you choose to protect your capital.

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