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    The Ultimate Guide to Profitable Stop-Loss Planning

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    작성자 Aiden
    댓글 댓글 0건   조회Hit 3회   작성일Date 25-11-14 00:56

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    A lot of traders dismiss stop-losses as symbolic


    But in reality, a stop-loss is one of the most critical tools for preserving capital


    Emotional reactions and تریدینیگ پروفسور guesswork are the #1 reason stop-losses don’t work


    To implement stop-loss strategies that actually work, you need to base them on market structure, volatility, and your personal risk tolerance—not gut feelings or arbitrary percentages


    Your trade plan must include both entry and exit logic


    Every valid trade should have a clear reason for entry and a logical reason for exit


    A stop-loss should be placed at a point where your original thesis is invalidated


    If your entry relies on a support bounce, place your stop beneath the support zone


    If the price breaks below it, the support has failed, and your reason for being in the trade no longer exists


    Setting stops too near the entry invites premature exits


    This often results in being stopped out by normal market noise


    Base your stop distance on ATR, not arbitrary pips


    Your stop should reflect the market’s typical volatility, not your fear


    A stop at 1.5 to 2 times the average range gives the trade room to breathe while still protecting you from large adverse moves


    Risk management begins with position sizing, not entry timing


    Consistent risk limits prevent catastrophic losses


    This means your stop distance determines your position size, not the other way around


    Risk $100, stop at $3 → buy 33 shares


    This ensures your risk profile remains stable across all trades


    Review historical trades to validate your stop strategy


    Look at past trades and ask yourself: Would my stop have been triggered too early? Too late?


    Was your stop effective during volatility spikes?


    Adjust based on data, not emotion


    Over time, you'll notice patterns in how your chosen market behaves and can refine your stop placement accordingly


    Discipline is non-negotiable


    Fear-driven adjustments destroy your edge


    Never extend your stop to chase a recovery


    Your stop is a contract with your trading plan


    Every adjustment undermines your system


    Traders who stick to their stops outlast those who don’t


    It’s not about avoiding every minor loss


    The right stop lets you stay in the game until the odds turn in your favor

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