$AVA ｜Breaking through the 0.3 level
Before considering your position size, first understand key round-number levels.
There are often many stop-loss orders clustered around these levels. If the price moves past one, those stops can be triggered all at once, often causing volatility to spike suddenly.
When the price repeatedly crosses a key level, both bulls and bears can easily get shaken out. It may be best to trade less—or not at all—until the direction becomes clear.
With leveraged trading, first consider whether you can withstand the worst-case scenario, then think about what the indicators are saying.
Before considering your position size, first understand key round-number levels.
There are often many stop-loss orders clustered around these levels. If the price moves past one, those stops can be triggered all at once, often causing volatility to spike suddenly.
When the price repeatedly crosses a key level, both bulls and bears can easily get shaken out. It may be best to trade less—or not at all—until the direction becomes clear.
With leveraged trading, first consider whether you can withstand the worst-case scenario, then think about what the indicators are saying.