Setting Limits: Stop Loss & Take Profit Rules That Work
Stops prevent catastrophic losses.
๐จ Use ATR-based stops or a percentage-based approach (e.g., 3โ5% for scalps, 10โ20% for swings).
Take-profits: tiered exits protect gains and allow upside participation. Example: sell 30% at first target, 30% at second, hold 40% for trend. Avoid moving stops to avoid โstop huntingโ mistakes โ set rules and stick to them. For volatile alts, widen stops or use options/hedges if available.
Share your stop strategy โ fixed % or ATR? Letโs compare. ๐ Not financial advice.
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