๐ Stop Loss MASTERCLASS:
3 Golden Rules to Save Your Trades! ๐
๐จ Rule 1: Anchor to Support/Resistance
- Long trades: Stop loss belowthe nearest support.
- Short trades: Stop loss above the nearest resistance.
Why? If price breaks these levels, the trend is likely dead.
๐ก Rule 2: Never Risk More Than 2%
- Calculate 2% of your account.
*Example*: $5,000 account โ Max $100 risk per trade.
- Adjust position size to fit your stop loss distance.
๐ช๏ธ Rule 3: Respect Volatility (Use ATR)
- Multiply the **Average True Range (ATR) by 1.5-2x.
- Sets a dynamic stop that adapts to market chaos.
๐ฅ Pro Tip
Combine all three:
1. Place stops at support/resistance.
2. Size your trade to risk โค2%.
3. Use ATR to avoid getting โnoised out.โ
๐ Your Action Plan
1. Backtest these rules on past trades.
2. Stick to them for 10 trades.
3. Adjust *only* after reviewing results.
๐ฌ Your Turn:
Which rule do YOU struggle with? Drop a comment! ๐