Lyrics. Baddest, Ruffest.

How do I put the Stop Loss

Commenting on the previous entry received such here's a question that now responded, "If we do not set the take profit, what you have stop loss?" I wonder how you had a stop loss at the beginning, when opening the position and what you have now, because I assume that it zwiększyłeś. "

Stop Loss setting directs the Dow theory `a (support and resistance) theory, this theory also applies to detect a trend but the SL is also useful.

Generally Dow invented such a thing. When the chart appears more and higher peaks have doczynienie the upward trend when the graph appears progressively lower peaks doczynienie we have a decreasing trend. More about this theory, I wrote here theory Moldova - you'll find a picture explaining.

easy to see that another peak occurring and another hole adjustment means no, and just at the ends of these adjustments, put your SL with this reserve to variability not kicked the position too quickly.

Now an example from my recent trejdów on the eur / usd

In the picture you can see my 2 orders already closed. Four-hour chart. The first open order (blue arrow) had about 80 pips SL below the arrow, this place is just the correction. When the course went after it switched my thinking so as to have perhaps 5 points including loss of profit spreed. What does it mean that the course went after thought? This item has not been closed and drew the next summit. My last SL was white thick line - it is clear that there is there end of the correction because the correction is quite large (150 pips) I left there, hoping to SL next big move. Price struck new highs but decided swept orders were open for long. My request also has been closed.

second order is also a blue arrow (second). At the beginning of SL was the green line, where the rate went up switched on the SL entry point and left the position in peace. Earned in this way 24 zł but better than a loss.


I just used Dow theory someone else may not like this theory but be excited by the waves Elliott, or something else. SL is a way of making a very important as it is important enough to go into the market. The important thing is to have a plan from beginning to end before you press the button buy or sell. You need to have the signals and on the basis of their contain endfig, you need to refer to capital management in order not to blend everything in one transaction and you must have some experience to know what obstacles waiting for us.