Resolved Question
How can I decrease the gap between entry and stop loss?
May I ask for some suggestions, please?
over 2 years ago
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I'm not quite sure what you're asking. But I'm assuming that you are asking how to set a stop loss so as to limit potential losses. Ideally, you would set your stop loss at a point at which your trade idea is wrong. At the same time, you have to consider giving your trade enough breathing room to withstand volatility. Try placing your stop loss just past key support and resistance areas. For example, you plan to go long on a pair that has been on a strong uptrend as of late. You plan to enter once the pair hits the trend line, which would provide some support. Your stop loss would then be placed below the trend line, maybe 30 - 40 pips below it. Remember, the stop loss is a signal that you are wrong on the trade and that price may be racing off in the other direction. I hope this was helpful.
over 2 years ago
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Answers (1)
Placing the stop loss from the entry is determined by a trader’s strategy. If it goes past the high or low, it’s not going your way. You should consider your risk and divide it among the stop loss. For a trader, it is best to always consider the potential risk in a trade before the potential profit.
over 2 years ago
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