Using stock losses in our recommended risk management practice, as this will allow you to set a point where you think you are great idea might be invalidated from there you can be able to calculate your position size based on how much you are willing to risk on the trade these calculations will be discussed in a letter section for now let's take a look at the different methods in which you can determine your staff losses our common kind of Star Plus is the equity stop this is also known as a percentage dog because it determined as a part of the traders account that he or she is comfortable with flossing in case price action does not go in the traders favour this percentage value can vary from one raiders to another as this depends on the risk profile . More aggressive traders can be comfortable with risk in 10% of the account in a single trade why conservative once white leather is stick to 1% to 2% risk for trade this value can also depend on the traders confidence in a particular read some traders reached a smaller amount of their account on countertrend steps while receiving twice as much on trade following steps since these might have a higher probability of winning and other kind of staff is the charts of which is commonly used by traders who looked at technical this is based on price action and where the traders things that the trade idea will be invalidated. For instance, if you are making a trade based on a trend line was then you would set a chat stop below the trend line was that what area brace you can be sure that the uptrend is already invalid and that you need to get out of your trade by setting a chat stop the order will automatically be triggered even if you are not in front of your platform at that time if you are making a short trade based on a break up then you can set a stop loss above that spots on you thought would be broken if you are making a long trade based on a Breakout you can have a stock below the resistance area you think might break. The volatility stop is another kind of stuff that is usually taken by more advanced traders this takes into account how much a currency pair usually make per day and that's a stop loss in peeps based on that amount for instance a currency can move at an average of 100 fix each day so you can set a 150 stop loss from your entry knowing that price does not usually go by and that people moment in a day technical indicators such as bolinger bands can also takes price volatility into account and these can be used to set volatility in stops as well. Lastly, the time stop can also come in handy, especially if you are a longer-term traders the basically that's a limit on how long you plan to keep your trade plan open if price is not moving in the direction you thought it would given the time limit you said then you might be better off clothing that trader and using your trading capital in another trade. Thanks
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