Chapter 12 Stop-Loss And Take Profit
STOP LOSS = (A PRICE THAT WE ARE ALLOWED TO LOSE AND LIMIT OUR LOSS FROM THE PLACE OF ENTRY. WHEN A STOP LOSS HITS, OUR ORDER IS AUTOMATICALLY CLOSED AND WE ARE IN A LOSS FOR THE PRICE WE ORDERED )
TAKE PROFIT = (TARGET WHERE THE PRICE GOES AND WHEN THE PRICE
HITS THE TP, THE PRICE YOU ENTER WILL AUTOMATICALLY CLOSE AND
YOU ARE IN A PROFITABLE SITUATION FOR THE PRICE WE ORDER )
WHY STOP LOSS IS IMPORTANT? = WHEN WE ENTRY ANY MARKET, WE MUST PLACE A STOP LOSS SO THAT WHEN THE MARKET CRASHES AND THE PRICE DOES NOT COMPLY WITH YOUR ANALYSIS, YOU DO NOT EXPERIENCE A SITUATION OF SEVERE LOSSES BECAUSE YOU HAVE ALREADY LIMITED HOW MUCH YOU ARE WILLING TO LOSE
