🎯 A stop-loss should be placed where your trading scenario is no longer valid.

If it’s too close to the entry price, a normal market fluctuation may close the trade too early. First identify the level that invalidates your setup, then calculate your position size based on your risk.

👇 Where do you usually place your stop-loss?

📈 Struggling to see the trend through all the market noise? The Zig Zag indicator filters out smaller price moves and connects key highs and lows with straight lines.

The indicator makes it easier to spot the main trend, gauge the size of price swings, draw support and resistance levels, and identify Elliott wave patterns.

🔍 However, Zig Zag doesn't predict price movements, and its latest line segment can change as new price data comes in.

Our new article explains how to read Zig Zag signals, what the indicator does well, where it falls short, and how to use it in your trading.

🔍 Different trading instruments can have different contract sizes, minimum volumes and overnight swap rates.

Check the contract specification before opening a trade to understand the trading conditions and calculate your position size correctly. You can find it for every instrument in LiteFinance terminals.

👇 Do you check the contract specification before trading a new instrument?

🧭 Is the market trending or moving sideways? Aroon helps you tell by tracking how many candles have passed since the highest high and lowest low within a set period.

Its two lines, Aroon Up and Aroon Down, range from 0 to 100%. Aroon Up staying at 100% for several candles signals a strong uptrend. Aroon Down at 100% points to a downtrend.

📊 Aroon doesn't measure the size of price moves or account for trading volume, so it works best alongside other tools.

Our new article explains how to read Aroon signals and use them in your trading.

⚠️ Adding to a losing position lowers your average entry price, but it also increases your total exposure and potential loss.

If the market keeps moving against you, your free margin will shrink even faster.

👇 Have you ever averaged down on a losing position?