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$Apple (AAPL.US)$ Why do I emphasize risk management and sto...
$Apple (AAPL.US)$ Why do I emphasize risk management and stop-losses?
When their trades are in the green, most traders are able to make a profit when it reaches 10%-20% profit. They sometimes set trailing stops, or by then they would exit most or all of their positions.
That being said, if you, as a trader, are doing the same thing, why are you allowing your red trades to exceed 10%-20% in the red?
You must have a strategic perspective in both aspects. You cannot expect your red trades to turn green.
If you know that you are profiting at a rate of 10%-20%, then you must also respect the same approach in the opposite direction.
It doesn't matter how big or small your account size is. The key is knowing when to exit in both scenarios.
Many people, if they don't grasp this method, often lose the most capital. Why put your capital at risk when the trade is not favorable to you? However, those who do not follow this rule are the ones who say "the market is being manipulated." No, you are not smartly using your capital. You are like a gambler who doesn't know when to stop. The addictive personality always tries to enter a trade, even if it is unfavorable to you. This is the reason why most people's accounts are blown up.
How often do you reassess your trades? What are your strengths and weaknesses? What did you see when you entered this industry? Where did you go wrong? Where did you do things right? Do you have an exit strategy when the price reaches a certain target (regardless of your gaming direction)? Do you ask yourself these questions at the end of the trading day? If not, then if you truly want to successfully build your account, you may need to do so.
Don't let others control your money. If you follow someone into a trade, it doesn't mean that person will always let you exit the trade. Most people won't even disclose when they get out. Does the person you're following have a stop loss? An exit strategy in the green? If not, then why are you following them?
These are the questions you need to ask yourself.
If the post is too long, please apologize. But 90% of retail traders lose money because they do not have proper risk management. Be smart with your capital. This is your money! $Amazon (AMZN.US)$ $Netflix (NFLX.US)$
When their trades are in the green, most traders are able to make a profit when it reaches 10%-20% profit. They sometimes set trailing stops, or by then they would exit most or all of their positions.
That being said, if you, as a trader, are doing the same thing, why are you allowing your red trades to exceed 10%-20% in the red?
You must have a strategic perspective in both aspects. You cannot expect your red trades to turn green.
If you know that you are profiting at a rate of 10%-20%, then you must also respect the same approach in the opposite direction.
It doesn't matter how big or small your account size is. The key is knowing when to exit in both scenarios.
Many people, if they don't grasp this method, often lose the most capital. Why put your capital at risk when the trade is not favorable to you? However, those who do not follow this rule are the ones who say "the market is being manipulated." No, you are not smartly using your capital. You are like a gambler who doesn't know when to stop. The addictive personality always tries to enter a trade, even if it is unfavorable to you. This is the reason why most people's accounts are blown up.
How often do you reassess your trades? What are your strengths and weaknesses? What did you see when you entered this industry? Where did you go wrong? Where did you do things right? Do you have an exit strategy when the price reaches a certain target (regardless of your gaming direction)? Do you ask yourself these questions at the end of the trading day? If not, then if you truly want to successfully build your account, you may need to do so.
Don't let others control your money. If you follow someone into a trade, it doesn't mean that person will always let you exit the trade. Most people won't even disclose when they get out. Does the person you're following have a stop loss? An exit strategy in the green? If not, then why are you following them?
These are the questions you need to ask yourself.
If the post is too long, please apologize. But 90% of retail traders lose money because they do not have proper risk management. Be smart with your capital. This is your money! $Amazon (AMZN.US)$ $Netflix (NFLX.US)$
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