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Thread: How to place stop loss correctly ?

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    Moderator cool user Resolve's Avatar
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    Smile How to place stop loss correctly ?

    How to place stop loss correctly ?

    When we are opening our trades in the currency markets we have to place Stop Loss. The main criteria which we would have to consider is what are the levels at which we can place our stop loss.

    The most popular criteria for placing a stop loss is the daily support and resistance levels also known as SnR Levels.

    I will try to explain with the help of a Line chart:

    EURUSD 5 Minute Line Chart



    As you can see in the above chart the support level is at 1.1732 and the Resistance level is at 1.1808.

    So the Ideal Stop Loss will be at 1.1732 - 30 = 1.1702 for the BUY Orders.

    And the Ideal Stop Loss will be at 1.1838 for the SELL Orders.

    Here we need to understand the fact that the main objective of a Stop Loss is to protect our accounts from the losses and at the same time also do not come in the way of our correct trades so that we are able to get the profits from our trades if they are correct.
    Last edited by Resolve; 08-31-2021 at 03:46 AM.

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