Today, we will discuss the important things that are essential for a trader's success:
1. The Importance of Stop Loss
It often happens that one of your trades closes in profit, whether through analysis or by chance. But the real problem comes when your Stop Loss is hit, and the market goes up again. In this case, many traders skip placing a stop loss the next time. This is the biggest mistake! Not placing a stop loss can completely wipe out your account.
2. Using Break-Even
When your trade goes into profit, moving your stop loss to the entry point (where you started the trade) is a great strategy. The advantage of this is that even if the market suddenly comes back, you will not have to bear any losses from your pocket.
3. Exiting the wrong trade in time
If the market is not going in your favor, it is better to close it at a small loss. Most traders get stuck when the market breaks a support and retraces. Instead of sitting around hoping that the market will go up, it is better to exit your position. This is where smart traders save their capital.
Always remember that following principles rather than emotions in trading can save you from big losses. Thank you! If you liked this information, be sure to like and share it and express your opinion in the comments.