https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend">Trading Tip #1 - 𝐑𝐈𝐒𝐊 𝐌𝐀𝐍𝐀𝐆𝐄𝐌𝐄𝐍𝐓

Risk 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?

https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">[THREAD]

𝐒𝐭𝐨𝐩 𝐋𝐨𝐬𝐬𝐞𝐬

& #39;𝘈𝘯 𝘰𝘳𝘥𝘦𝘳 𝘵𝘰 𝘤𝘭𝘰𝘴𝘦 𝘢 𝘱𝘰𝘴𝘪𝘵𝘪𝘰𝘯 𝘢𝘵 𝘢 𝘤𝘦𝘳𝘵𝘢𝘪𝘯 𝘱𝘳𝘪𝘤𝘦 𝘱𝘰𝘪𝘯𝘵 𝘵𝘰 𝘭𝘪𝘮𝘪𝘵 𝘰𝘯𝘦’𝘴 𝘭𝘰𝘴𝘴𝘦𝘴.& #39;

The primary purpose of a stop loss is to 𝙥𝙧𝙤𝙩𝙚𝙘𝙩 a trader’s account balance when they are wrong on a trade.

A trader’s stop loss must be based on technical analysis.

A trader’s stop loss must be placed at the 𝗶𝗻𝘃𝗮𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻 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.

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