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Do you place your stop losses in valid places or do you just place them anywhere?

Here are three valid reasonings to position a stop loss in the right place.

1. If trading inside two zones, it makes sense to place your stop loss outside of the zone. For example, if we place a buy at the support (bottom) zone, we would place the our stop loss underneath the zone.

2. If trading the breakout strategy, it would make sense to place your stop loss underneath or above the zone that price has just broken above/below. For example, if price breaks above a resistance (upper) zone and retests it, we would place a buy and place our stop loss underneath the newly made support zone.

3. If trading using trend lines, and you’re trading with the trend, it makes sense to place your stop loss underneath the trendline. This ones simple, if price breaks below the trend line, price has changed trend.

Remember to always place your stop loss in valid places and make sure your stop loss is significantly smaller then your take profit!

RISK:REWARD IS EXTREMELY IMPORTANT!

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Increase your risk reward by following these three techniques.

Of course these are all a part of a bigger picture, but hopefully it helps as a guide.

BTW: This is just personal opinion.:-)

@CryptoTrades #education #risktoreward #cryptotradespremium