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Trading Tip #1 - ๐๐๐๐ ๐๐๐๐๐๐๐๐๐๐Risk management is the most important yet least popular topic in trading.
it is the backbone of any good trading strategy and what separates traders from gamblers.
But how do we reduce risk?
[THREAD]
๐๐ญ๐จ๐ฉ ๐๐จ๐ฌ๐ฌ๐๐ฌ
'๐๐ฏ ๐ฐ๐ณ๐ฅ๐ฆ๐ณ ๐ต๐ฐ ๐ค๐ญ๐ฐ๐ด๐ฆ ๐ข ๐ฑ๐ฐ๐ด๐ช๐ต๐ช๐ฐ๐ฏ ๐ข๐ต ๐ข ๐ค๐ฆ๐ณ๐ต๐ข๐ช๐ฏ ๐ฑ๐ณ๐ช๐ค๐ฆ ๐ฑ๐ฐ๐ช๐ฏ๐ต ๐ต๐ฐ ๐ญ๐ช๐ฎ๐ช๐ต ๐ฐ๐ฏ๐ฆโ๐ด ๐ญ๐ฐ๐ด๐ด๐ฆ๐ด.'
The primary purpose of a stop loss is to ๐ฅ๐ง๐ค๐ฉ๐๐๐ฉ a traderโs account balance when they are wrong on a trade.
'๐๐ฏ ๐ฐ๐ณ๐ฅ๐ฆ๐ณ ๐ต๐ฐ ๐ค๐ญ๐ฐ๐ด๐ฆ ๐ข ๐ฑ๐ฐ๐ด๐ช๐ต๐ช๐ฐ๐ฏ ๐ข๐ต ๐ข ๐ค๐ฆ๐ณ๐ต๐ข๐ช๐ฏ ๐ฑ๐ณ๐ช๐ค๐ฆ ๐ฑ๐ฐ๐ช๐ฏ๐ต ๐ต๐ฐ ๐ญ๐ช๐ฎ๐ช๐ต ๐ฐ๐ฏ๐ฆโ๐ด ๐ญ๐ฐ๐ด๐ด๐ฆ๐ด.'
The primary purpose of a stop loss is to ๐ฅ๐ง๐ค๐ฉ๐๐๐ฉ a traderโs account balance when they are wrong on a trade.
A traderโs stop loss must be based on technical analysis.
A traderโs stop loss must be placed at the ๐ถ๐ป๐๐ฎ๐น๐ถ๐ฑ๐ฎ๐๐ถ๐ผ๐ป level.
This is the price point which your thesis is proven wrong.
A traderโs stop loss must be placed at the ๐ถ๐ป๐๐ฎ๐น๐ถ๐ฑ๐ฎ๐๐ถ๐ผ๐ป level.
This is the price point which your thesis is proven wrong.
Protecting your wealth, will become especially important in these turbulent times.
I personally am comfortable in the range of 1-5% loss before my order is triggered.
If you found this Thread beneficial or think it may benefit others, please feel free to Retweet
I personally am comfortable in the range of 1-5% loss before my order is triggered.
If you found this Thread beneficial or think it may benefit others, please feel free to Retweet
