5. Manage your stop losses and limit orders:
Once a stock is nicely in profit it should never be closed at a loss.
There should only be three outcomes of your trades. A small win, a small loss, and a big win. Big losses should not be showing up in your trading results.
THREAD FOR BEGINNERS (Part 2):
- TRADE MANAGEMENT
Everything a trader does after a trade is open until the trade is closed. Managing trades can increase profits, whilst minimising risk. It involves tasks such as determining position size, monitoring the trade and executing exits
4. Pyramiding
Pyramiding is the process of increasing the size of successful trades.
It can help you increase your winning in trending environments when done correctly. The key is not to increase the risk of your overall position and only use profits as your additional risk.
6/n :
Areas of entry- Areas of support are possible places to enter a trade. If you can enter a trade before it makes a significant move, you have more potential to profit.
Areas to take Profits- Areas of resistance are good places to take profits or exit a trade altogether.
5/n :
Fibonacci retracement levels do not change. This allows traders and investors to react quickly when price levels are tested, as these levels are inflection points, traders expect some type of price action, either a break or a rejection.