"People say that if you want to trade, you must have a stop-loss, but why is the trade so long at losses? Like this, you don't have to put a stop-loss! ”
Many traders out there are actually still confused about the strategy of using ‘stop-loss’ (SL) settings in their trading.
Sometimes when a trading position is affected by SL, it continues to create a melting account. There are also when the price touches the right SL before breaking back in the direction the trader wants and they will miss out to make a profit. You've had the same experience, haven't you?
This article will share strategy tips for setting stop-losses in more ways for each of your trading positions.
#1 Don't set the stop-loss too close to the entry
The mistake that many traders especially beginners who are just starting out in trading is setting SL too close to their trading position on the pretext of not wanting huge losses.
With an SL distance of only 5 to 10 pips it is very inappropriate as it only eats away at the trader himself.
This technique is very disadvantageous because it is difficult for a trader to get such an accurate entry. So traders need to provide suitable space for the price to move first before a profit can be achieved.
#2 Do not set the stop-loss exactly at the SNR zone
If you already understand about support & resistance (SNR), surely you understand where the area that is the focus of the price and here is also the right place to place your SL.
However, you are not encouraged to place exactly in that zone because the price will test this SNR zone first before turning.
Preferably, set it slightly outside the zone either above the resistance (Sell position) or below the support (Buy position) to prevent the price from touching your SL before continuing the movement in the direction you want and adding to your frustration.
If the price breaks your SL, you don't have to worry anymore even if you experience a loss because the situation is likely to be an indication for the price to change direction or trend.
#3 Never move the stop-loss you set
Traders are often afraid to face a loss situation when the price goes against the direction of the trading position set in the beginning.
However, you need to be disciplined with your trading plan and not occasionally move the SL further as the price gets closer to it.
If the price has changed the trend and you move the SL further, you will incur a larger amount of loss than it should.
Therefore, set a stop-loss with a more correct method and do not be afraid if you experience a loss when the price hits your SL because losses are a normal thing in the trading process.
