$Apple (AAPL.US)$ Why I emphasize risk management and stop l...
$Apple (AAPL.US)$ Why I emphasize risk management and stop loss:
Most traders get a profit when their trades are green and profits reach 10%-20%. They sometimes set trailing stops, or at that point they will exit most, if not all, of their positions.
Having said that, if you're also doing this as a trader, then why are you allowing your red to trade more than 10%-20% red?
You have to have a strategic vision on both sides. You can't expect your red trade to turn green.
If you know you're making a profit of 10%-20%, then you must also respect the same approach in the opposite direction.
Whether your account is big or small, it doesn't matter. The key is knowing when to quit these two methods.
Many people tend to lose the most money if they don't master this method. Why risk your capital when trading isn't good for you? However, those who don't abide by this rule are those who say “the market is manipulated.” No, you're not using your capital smartly. You're like a gambler and don't know when to stop. Addictive personalities are always trying to get into a deal, even if it works against you. That's why most people's accounts have been blown up.
How often do you reevaluate your trades? What are your strengths and weaknesses? What did you see when you entered this industry? What's wrong with you? Where did you do the right thing? When the price reaches a certain target (regardless of the direction of your game), do you have an exit strategy? Do you ask these questions after the trading day is over? If not, then you might need to do this if you really want to successfully set up your account.
Don't let others dictate your money. If you follow someone into a trade, that person isn't always able to get you out of the deal. Most people don't even want to say when they came out. Does the person you're following have a stop loss? exit strategy when green? If not, then why are you following them?
These are all questions you need to ask yourself.
Apologies if this post is too long. But 90% of retail traders lose money because they don't have proper risk management. Be smart about your capital. It's your money! $Amazon (AMZN.US)$ $Netflix (NFLX.US)$
Most traders get a profit when their trades are green and profits reach 10%-20%. They sometimes set trailing stops, or at that point they will exit most, if not all, of their positions.
Having said that, if you're also doing this as a trader, then why are you allowing your red to trade more than 10%-20% red?
You have to have a strategic vision on both sides. You can't expect your red trade to turn green.
If you know you're making a profit of 10%-20%, then you must also respect the same approach in the opposite direction.
Whether your account is big or small, it doesn't matter. The key is knowing when to quit these two methods.
Many people tend to lose the most money if they don't master this method. Why risk your capital when trading isn't good for you? However, those who don't abide by this rule are those who say “the market is manipulated.” No, you're not using your capital smartly. You're like a gambler and don't know when to stop. Addictive personalities are always trying to get into a deal, even if it works against you. That's why most people's accounts have been blown up.
How often do you reevaluate your trades? What are your strengths and weaknesses? What did you see when you entered this industry? What's wrong with you? Where did you do the right thing? When the price reaches a certain target (regardless of the direction of your game), do you have an exit strategy? Do you ask these questions after the trading day is over? If not, then you might need to do this if you really want to successfully set up your account.
Don't let others dictate your money. If you follow someone into a trade, that person isn't always able to get you out of the deal. Most people don't even want to say when they came out. Does the person you're following have a stop loss? exit strategy when green? If not, then why are you following them?
These are all questions you need to ask yourself.
Apologies if this post is too long. But 90% of retail traders lose money because they don't have proper risk management. Be smart about your capital. It's your money! $Amazon (AMZN.US)$ $Netflix (NFLX.US)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
