A good Stop Loss setting is the most important thing of trading system. Why ?
Let's say you have init balance 1000USD , you entry a order and lost -50% , then you left 500usd only , which mean you have to make your account increase 100% to recover to 1000USD ( 500 * 200% = 1000) .
This is...
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1.Do not overtrade
◦Trade within your means
◦Use 1/3 of your total margin only
2.Always use protective stops to limit losses
◦Go in with a plan
◦Don't trade impulsively
◦Have predetermined risk as well as profit
◦Don't move stops higher or lower and say "It'll come back."...
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