A logical method of stop placement
trader
will be wrong sometimes. When a trade does go wrong, there are only two options: to accept the loss and
liquidate
your position, or go down with the ship.
This is why using
stop orders
is so important. Many traders take profits quickly, but hold on to losing trades – it’s simply human nature. We take profits because it feels good and we try to hide from the discomfort of defeat. A properly placed stop order takes care of this problem by acting as insurance against losing too much. In order to work properly, a stop must answer one question: At what price is your opinion wrong?
Hard Stop
ATR % Stop Method
Figure 1
Source: FXTrek Intellichart
Multiple Day High/Low
Figure 2
Source: FXTrek Intellichart
Figure 3
Source: FXTrek Intellichart
Closes Above/Below Price Levels
Figure 4
Source: FXTrek Intellichart
Indicator Stop
Figure 5
Source: FXTrek Intellichart
The Bottom Line
A quick note about the reviews on this site: I am an affiliate for every product I review. The vendors of these products give me them without charge in order for me to test them. However all my reviews are done as honestly as possible and I make no promises to the vendor prior to writing my review. Should you click a link on this site that takes you to a paid product this link will be an affiliate link and I will be paid a percentage of the sales price should you decide to purchase that product.
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simkesrb
Affiliate Marketer, Abundant Thinker, Good Listener,Helping Others from Kragujevac – SERBIA 😉