With our years of experience, we have produced free courses for you to make your first step in trading NEWSOLID's courses are categorised into three different levels: beginner, advanced, and professional to help different level of traders. We also provide demo account for you to practice what you have learned and to become a better trader.
Join NowNo one can predict the future, no matter how experieced you are and sometimes you will make losing trades.
When you start losing, it might affect you in a negative way and affect your judgements, resulting in further loses.
Thus, it is important to make an exit strategy to trap yourself in a losing cycle
Before trading, you should think to yourself how much profit do you wish to gain from the trade and how much are you willing to lose.
The last thing you wish to experience is that before you sleep, market was going your way but reserved when you wait up.
Alternative, you do not wish to put yourself in a situation where you need to close a position while you are busy at work.
Thus it is important for you to set a stop loss which is something we are discussing next:
Setting stop loss can help you close position and reduce your losses without your intervention.
Using stop loss to close position can also stop you from making emotional judgements
Emotion is something traders tend to overlook when trading as bad trades can affect your decision making without you even realising it.
For example, you long a position and the market was going your way. Suddenly, the market is going against you and you are lossing from the position and you are irrationally hoping that the market will return to the previous price level when all indictors suggest otherwise.
While you loss was certain, you might put yourself in deeper water by making even more irrational trades to recover from the loss.
To avoid this situation, you can set a stop loss when your brain was thinking rationally and let the stop loss do the trading for you.
