Stop Loss
Trade exits can be just as important , if not more important , than trade entries. Learning to love to take loss is an absolute necessity if you were to be successful in the trading market. Basically you need to reach a psychological stage whereby losses should not bother you much , so long as you act fast to be out of the market when the trade no longer represent a profitable opportunity. No one is going to be happy to have a losing trade , but you should be happy to be able to minimize loss before it ruin your capital.
Many traders learn this the hard way. They end up losing their trading account before they realize the importance of preserving capital and the concept of stop loss.
Just like a trade entry , the window of opportunity is rather narrow for trade exit too. Once you confront the possibility of being wrong , and when it is time to …
