Be careful with the stop loss

150 2
Hi guys!
Today we have one more article that will help to improve your trading skills.
Let's analyze IOTA chart.
At the point A, price bounced off and began sideways trend to accumulate force. Coming out of this channel can take a long time. Most people which bought after the bounce will set stop losses at the level of point A. And some of them will set stop losses at the level of point B and that will be a worse solution.
The price is approaching the support fast and breaks it at point C. All stop losses, at level B and at level A, have worked. Price makes strong wave after this.
We can see such a situation on graphs where price is moving sideways. That's why I often use mental stop loss, i.e. I identify level with which reaching I can close my positions by market order. In such a situation, stop loss can't work mistakenly. However, you have to spend more time monitoring graphs.
Of course, I can't recommend you to use such stop losses all the time. But if you need more reliable protection level, you can use a mental stop loss.
I am waiting for your likes, followings, and questions!
I am sorry, but I didn't quite understand what you meant. Could you please explain more?
@mi_khan, You can read our other articles to improve your trading skills.
+1 Antworten
DE Deutsch
EN English
EN English (UK)
EN English (IN)
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Startseite Aktien-Screener Devisen-Screener Krypto-Screener Wirtschaftskalender So funktioniert es! Chartmerkmale Hausregeln Moderatoren Webseite & Brokerlösungen Widgets Stock Charting Bibliothek Feature-Anfrage Blog & Nachrichten FAQ - Häufige Fragen & Antworten Hilfe & Wiki Twitter
Profil Profileinstellungen Konto und Abrechnung Meine Support Tickets Support kontaktieren Veröffentlichte Ideen Followers Ich folge Private Nachrichten Chat Abmelden