Stop loss and take p...from May Belle

01 Aug 2020, 04:16 · Views 1,081

Stop loss and take profit should be based on the market situation, not financial opportunities. If you need to set a stop longer than your deposit allows, the trade should be canceled. #BeginnerTrader# #IamAtrader# #AllforYou#

Disclaimer: The views expressed are solely those of the author and do not represent the official position of Followme. Followme does not take responsibility for the accuracy, completeness, or reliability of the information provided and is not liable for any actions taken based on the content, unless explicitly stated in writing.

Reply 0

Leave Your Message Now

May Belle

0 Posted · 2 Followers

#BeginnerTrader#

You should not expect that the loss-making trades will ultimately lead to a reversal and profit. You should not build up a position on it, proving to yourself that you are right. The best solution would be to exit the position and accept your losses, as they are inevitable in stock trading. #BeginnerTrader# #AllforYou# #IamAtrader#

May Belle

Some explanations for my previous post. Risk-to-Reward Ratio = Ratio of what you stand to lose compared to win Fixed % Risk = A fix % amount of your total account balance at risk per trade Fixed Dollar Risk = A fix Dollar amount at per risk trade. Regardless of account size fluctuations. Win Rate = The % out of all trades that are winners

May Belle

If the series of losing trades are going on, it is worth to take a break. This will allow you to gather your thoughts and, possibly, turn the tide. #BeginnerTrader# #copytradingvsselftrading# #IamAtrader#

May Belle

The fixed dollar approach uses relatively simple math for breaking even as shown below. Example: 3 losing trades followed by 1 winning trade using 1:3 risk-to-reward achieves breakeven (ignoring trading fees and slippage) This risk-to-reward ratio itself implies the win-rate needed (lose $100 three times, win $300 once, you break even). The fixed dollar amount risk doesn't deal with compounding. As such, its logic cannot be used for fixed %. #IamAtrader# #BeginnerTrader# #TradeNotes#

May Belle

Low profit is better than No profit and low risk is always better than high loss. #copytradingvsselftrading# #BeginnerTrader# #IamAtrader#

May Belle