๐ STOP LOSS PLACEMENT: WHERE SHOULD YOU PUT YOUR SL?
A Stop Loss is not just a number you choose randomly.
It should be placed at a level where your trade idea becomes invalid.
3 COMMON WAYS TO PLACE YOUR STOP LOSS
1๏ธโฃ BELOW SUPPORT / SWING LOW ๐ข
For a Buy trade, place the SL below a meaningful support or swing low.
2๏ธโฃ ABOVE RESISTANCE / SWING HIGH ๐ด
For a Sell trade, place the SL above a meaningful resistance or swing high.
3๏ธโฃ BEYOND YOUR INVALIDATION LEVEL ๐ฏ
Your SL should be beyond the level that proves your analysis is wrong.
โ COMMON MISTAKES
โข Placing SL too close just to reduce the loss
โข Moving SL farther after entering
โข Trading without an SL
โข Choosing lot size before calculating risk
โข Moving SL because of emotions
๐ GOLDEN RULE
Don't place your Stop Loss where you WANT price to stop.
Place it where your TRADING IDEA IS PROVEN WRONG.
PLAN THE SL โ CALCULATE THE RISK โ THEN ENTER.
For educational purposes only. Not financial advice.
#StopLoss #RiskManagement #Crypto #TradingPsychology