I have come across many traders who say one should not place a stop loss because if they place stop loss then it get hit and after they come out of position because of stop loss trigger than price starts moving in the direction of their trade(which was there before stop loss trigger point).
This happens because of two reasons
1- If one is holding a trade against the trend
2- If one is placing hypothetical stop loss without the information of scientific technique of placing stop loss as per price action trading .
Solutions of above
1- Learn price action trading and stop taking trades against the trend because if a trader enters a trade against the trend then he/she will surely end up making loss. Imagine riding a bicycle against the flow of wind, same is the case with riding a trade against the trend.
So never blame your stop loss if you are riding a trade against the trade.
So never blame your stop loss if you are riding a trade against the trade.
2. Even if a trader is in a trade which is in line with the trend than also if he/she will place a stop loss hypothetically without proper knowledge of scientific technique of stop loss as per price action trading then also stop loss may hit and move in favour of previous trade.
So always place your stop loss on pivots as per price action trading.
So always place your stop loss on pivots as per price action trading.
Below is the chart explaining the stop loss placement as per price action trading over pivot highs in case of short sell trade.


No comments:
Post a Comment