How to Avoid Arbitrary Stop Losses Using Chart Analysis
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Description
In this episode, Brian Montes discusses the importance of setting technical stop losses when swing trading the stock market. He emphasizes that stop losses should be based on the chart and not arbitrary numbers. He explains that stop losses are meant to indicate when a trading idea is incorrect, even if the trade setup seemed perfect. Brian advises against using mental stop losses and recommends setting stop losses in the brokerage account to avoid missing them. He also suggests using support and resistance levels, moving averages, and patterns to determine stop-loss placement. Takeaways:: 1. Setting technical stop losses is crucial for managing risk when swing trading the stock market. 2. Stop losses should be based on the chart and not arbitrary numbers or personal risk tolerance. 3. Mental stop losses should be avoided, and stop losses should be set in the brokerage account to ensure execution. 4. Support and resistance levels, moving averages, and patterns can be used to determine stop-loss placement. Email your questions to [email protected] Looking to join the Disciplined Traders Community? https://disciplinedtradersacademy.podia.com/ --- Send in a voice message: https://podcasters.spotify.com/pod/show/brian-montes5/message
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