🗣Hey everyone, what's up? @SuperiorTrade_ shared an awesome article. I think it's worth checking out. To sum it up briefly.
🧙The reason your stop loss gets hit before a full reversal is often not bad analysis, but a poorly placed stop.
Most traders:
❌First decide how much they are willing to lose.
❌Then they set the stop based on that amount, folks.
🧙The market doesn’t care about your 3% risk or your desire to avoid losing 50$ .
👉The levels to watch are;
✔️Support-resistance
✔️Previous lows/highs
✔️Areas where liquidity is stacked
👉That’s why your stop should be determined by;
❌How much do I want to lose? question,
✅At what level does this trade become invalid? question, friends.
👉The most common mistake is;
➖Placing the stop where everyone else does
➖Round numbers,
➖Right below previous lows,
➖Exact 5%-3% distances...
🗣These are where stop clusters form. The price takes the liquidity, triggers the stops, and then continues in its direction.
Sound familiar? 😅
🗣Another mistake is ignoring volatility.
🗣If a coin moves 8% in a day, a 3% stop gets lost in the market noise.
🗣Even if you guessed the direction correctly, you'll get knocked out of the trade.
The golden rule, friends.👇
1️⃣First, find the point where the trade becomes invalid.
2️⃣Set the stop there.
3️⃣Then adjust your position size.
So;
Wider stop = Not bigger risk.
Wider stop = Smaller position.
🧙What professionals think:
🔸How much can I make? not,
🔸If I'm wrong, where do I exit and what will it cost me?
I’m curious about your thoughts too, let’s meet in the comments, friends.
#Bitcoin #Ethereum #Crypto #Trading #KriptoPara