/biz/ - Business & Finance

>>55109195
I forgot to mention the basics of stop losses, essentially you just set them in a logical place where the trade would be invalidated, usually below or above a key support or resistance level.
A simple example would be if I want to buy a stock based on a big green 15 min candlestick closing on its high, I would set a stop a little below the low of that candlestick. If I get stopped out then I simply fucked up in thinking this was the bull breakout, sometimes there can be 2 or 3 fakeouts before the real run. It takes time and experience to feel out what's real or not.
If the risk is too high because the only logical place is far away, which happens with strong moves, reduce your position size to fit the 1% loss rule.

>>51033794
Forgot the pic