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A lesson on Trade Risk Management

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My trading motto is "Be clear on my trade set-up and risk-reward, AND find out the catalyst for current stock price movements". Finding out the catalyst, as what I have mentioned earlier, is keeping up with market news. When we talk about managing risk and using a risk-reward ratio , it is about HOW MUCH WE GAIN when we are right and HOW MUCH WE LOSE when we are wrong .  First learn how not to lose, instead of how to win. Then we perform all that TA magic to find out if the ratio is satisfactory for us to enter a trade. To control how much we lose when we are wrong, we need to have a stop loss or trailing stop loss in place.  Read: Lessons on Stop Loss

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The contents of this blog are author's personal opinions and do not constitute advice to hold, buy or sell any securities, commodities or assets mentioned. I do not guarantee the accuracy and reliability of any information provided, and shall not be liable for any losses incurred from reading my posts or using the materials herein. This blog may contain affiliate links to external sites.