Professional traders are always good at managing risk. They trade the market with strong confidence even though they have to deal with the loss. To them, trading is a game of probability. They never break the rules of money management and thus they can make a profit most of the time. On the contrary, the inexperienced traders keep on breaking the rules and make things worse. To survive in the retail trading industry, you should learn to trade on gtradex in the market systematically. Only then you can make money without having any major problems.
So, what is stop loss?
A stop loss is a market order that closes the open trade when the market goes against the trader’s will. In short, it closing losing trades to limit the loss. You can either set it right after the trade or use the manual method to close the trade. But in the ideal case, a stop loss is usually placed right after the trade is executed.
Determining the stop loss price
To determine the stop-loss price, you have to follow some standard rules. For instance, you should have a piece of strong knowledge of the support and resistance level. Without having a strong knowledge about the support and resistance level, it will be very hard to manage your risk profile and you will keep on losing money most of the time. That’s why the top traders at Saxo markets always encourage novice traders to learn the stop loss placement in the demo account.
Does a demo account help?
You might be wondering that the use of a demo account is never going to help a trader. But if you do some analysis, you will be surprised to know that most of the successful traders have mastered the art of trading by using the practice trading account. In fact, by using the demo account, a trader can easily revise their trading strategy.
At the initial stage, you don’t have to trade the real account. Instead, you should trade with the demo account and place the stop loss. Once the trade hits the SL price, you need to monitor the market movement for the next few hours. Try to find the key reason for which you have lost the trades. And if you see the price goes in your favor right after hitting the stop loss, you might be using a very tight stop loss.
Learn to use the candlestick pattern
To succeed in the retail trading industry, you need to learn about the candlestick pattern trading strategy. Once you learn to manage the trades with the help of the candlestick pattern, you should be able to trade with tight stop loss. Trading the market with a tight stop is not going to work unless you learn you use low-risk factors. Limit your risk in each trade so that you don’t have to blame your actions.
While learning the price action trading strategy, you might have to use the demo account. Try to take things seriously and find the faults in your trading system. Keep on learning new things about the candlestick pattern trading technique so that you can manage the risk profile in a standard way.
Stop trading with greed
People often fail to set the perfect stop-loss since they trade with greed. But if you want to make a regular profit, you need to control the greed factor. Due to greed, retail traders often take high risks and blunders everything. They fail to place the stop loss at the most obvious place. To avoid such a problem, you have to trade without having any emotions.
Emotional attachment is very deadly for your trading career. At times, you might think you know everything about the market. But this is completely wrong. To protect your capital, you should follow the standard rules and trade the market with managed risk.
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