HOW TO REDUCE LOSSES IN TRADING
1. Start with Higher Timeframes – Use the 4H or 1D charts to identify the overall market trend before looking for entries.
2. Trade with the Trend – Look for opportunities that align with the higher timeframe trend. Use lower timeframes for precise entries with clear confirmations.
3. Never Skip Your Stop Loss (SL) – Every trade must have a stop loss. It's your first line of defense against major losses.
4. Use Low Leverage – When trading based on higher timeframes, you don’t need aggressive leverage. Focus on accuracy, not size.
5. Avoid Common SL Zones – Don’t place your stop loss in obvious areas. This helps you avoid SL hunting before the market continues in your direction.
6. Understand the Why Behind a Signal – If you're in a signal group, make sure the trade comes with a solid explanation. Always calculate your risk and leverage before entering.
7. Move SL to Breakeven – Once your first target is hit, shift your stop loss to breakeven to protect your capital.
8. Losses Are Part of the Game – Even pro traders take losses. Don’t revenge trade—treat every loss as tuition on the road to mastery.
9. Stick to 1%-3% Risk Per Trade – Even if the setup looks perfect, always manage your risk like a pro.
10. No Reason, No Trade – Avoid emotional or impulsive trades. If there’s no strong reason, stay out.
11. Stay Updated with Market News – Always be aware of upcoming news or events that might affect price action.
12. Watch BTC When Trading High-Volatility Tokens – BTC often acts as the leader. It can help you anticipate big moves.
13. Let the Trend Be Your Friend – For high-probability setups, always trade in the direction of the higher timeframe trend.