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Is Stop Loss an Enemy or Friend?
An average or
normal fears stop loss as if he or she has seen suddenly a snake. Remember stop
loss is our friend and is not an enemy as it is one of the mechanism to control
the risk and it shows that the strategy has gone against an individual.
One can day trade to financial freedom provided one understands the mechanism of
stop loss. Generally top loss are provided a tad lower than support and what
smart operators perform is that they make the stop loss hit and let the loose
hands get out of the market and thereafter they ride the profit. Similarly while
applying the stop loss one must keep it deep, however when giving the tips and
if stop loss is deep than the guys should understand the underlying principle
behind the fact that why the stop loss is deep and not immediately below the
support.
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