MOST OF YOUR TRADES HITTING YOUR STOP LOSS? HERE'S A STRATEGY THAT WILL WORK BEST FOR YOU!
If you're looking for a new strategy that will prevent losing most of the time, you're in the right place.
It's more than natural for our stop losses to get hit and there are times when days are bad, market conditions are unfavorable and your overall psychology isn't that well. We have developed a strategy that will further increase the chance of winning instead of losing. Have you noticed there are times when your trades hit your stop loss and then, they immediately bounce hitting your profit areas? What do you do by then? Do you chase the market or patiently observe?
Here's the strategy that you can use for such scenarios.
You can execute this strategy in different ways. The 1st method is to set your entry points at your stop loss. By doing this, in a scenario where your long position is most likely going to hit by sudden impulses in the market, you can at the very least, prepare for such unexpected movement and once your entry at your stop loss hits, there's a possibility for the support to be the level of bounce, vice versa when you're doing short position near resistance. The 2nd method involves entering 2-3 limit orders with 2nd limit order's entry level at the 1st market order's stop loss and the 3rd limit order's entry level at the 2nd entry's stop loss. The 3rd method is to let the stop loss be and just move on.
This strategy, just like every strategy that exists, have its corresponding risks and as such, preparing for the risks and mitigating them will give you advantage.
Stay wise, trade cautiously.
