STOP LOSS
Today I want to share the most important topic for any trader - stop loss.
Where to put it to avoid premature closure of the deal and then not experience FOMO due to lost profits.
1. One of the most popular is setting a stop loss at the level
long-term price support for a long position or at the price resistance level for a short position. These are the key places where swing traders place their stop losses as they believe that breaking out of a range turns the market
from range bound to trending and their trade may continue to move against them.
2. Moving averages are another place where stop losses are placed. The moving average will depend on the time frame of the trade.
3. Moving average crossovers are another option for a systematic place to close a position. There are mechanical trading systems where you simply enter a trending trade when the shorter moving average crosses over the longer one, and then exit when the shorter moving average crosses over the longer one.
*continued in the next post
