There is one immutable rule in trade, which is: "Always stick to your stop orders." Before entering each transaction, you should know your risk tolerance threshold. This is - the best way to make sure that your losses are controlled, and you do not get too emotional in their trade.
Trading is a tough business. According to statistics, more traders unsuccessful than successful. But most traders fail not because their market valuations are wrong, but because they are too emotional in the trading process. Their failures are due to the fact that it is too early to close their profitable trades, or allow losses to go too far. Risk should be predetermined. The best time to consider your risk before you place a trade when your market assessments regarding the objective, and your trading decisions free from the price action. On the other hand, if you have already made a deal and want to keep it, until it becomes the winning, it unfortunately does not always happen. You must determine the worst-case scenario for your transaction, and place a stop order on the basis of the calculated risk value or technical level. We emphasize once again that the risk should be predetermined before you ente…
Read article
Translate to English Show original