Do not confuse your trade risk with your total position size. If your stop-loss is 5% away from your entry price on a 1% total account risk, your position size should equal 20% of your total account value. Calculate this balance precisely before entering any position. 9. Hard Stop-Losses Remove Emotional Hesitation
You will lose more money sitting in a boring, sideways market trying to “force” trades than you will in a violent crash. The first secret of consistent profitability is knowing when to do . Cash is a position. 22 stock market trading secrets pdf
Treat key technical levels as flexible price zones rather than rigid numbers. Algorithms routinely hunt liquidity just past obvious support levels to trigger amateur stop-losses before reversing. 8. Trade in the Direction of the Primary Trend Do not confuse your trade risk with your total position size