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A stop loss should not be based on an arbitrary number, or some random amount you’re willing to lose.
Rather, it should be based on whether your initial trading idea has been invalidated.
In this video post, I share with you how to place your stoploss using this logical approach.
I use 3 examples:
1) A classical support trade
2) A dynamic resistance trade
3) A head & shoulders pattern trade
I hope you have enjoyed this week’s video post. As always, comments are welcomed and encouraged. Cheers!
Thanks for watching!
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