A new investor will find the excitement tremendous and excited when the price increases, but will feel the pain, the pressure when the price drops, which is the consequence of not determining the target for themselves. This will cause the trader to hold the coin when the price on the peak and sell when suffering price hit the bottom.
How to choose your own stop? Say no to too positive thoughts about the market
Trade without putting stop loss like you are gambling in the market. It is better to go to and find a casino.
Stopping points are necessary and must have for a long existence to succeed.
Certainly, people have experienced a sense of loss with the following situation: You buy a currency in the market put a stop loss, but your stop loss soon after that when the market trend…bad. Some time later, you see this currency starts to grow and follows the trend that you previously desired.
How would you feel?
Wish I have not cut a hole at that time and now i can earn a decent amount of money right? This is the wrong mentality of the Trader, the failure of you to comply with the rules to put a stop loss will make you keep thinking that the price will not decrease again, will recover quickly.
As a result, you must be a very experienced person in the market, you know, burn the account and more losses?
Do not let a profit making order become a loss
For instance: you have Target to earn $ 1,000 per order, you need to know what the minimum amount is to ensure your profit.
Assuming you define $ 300 as needed for profit taking and can not let prices fall further, you lift your stoploss to make sure that when the market goes against the trend you can still guarantee 300. profit margins.
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