As we have come to the final point of the market environment topic I have decided that we need to look back at everything we have learnt this week.
There are such things as retracements and reversals. And there is no way for us to identify them. Retracement can some any time and any retracement can turn into a reversal without a warning sign.
That is why any time we are going into the markets we need to have protection. Like a safety net - so that we do not plunge down togerther with the chart. And for us that safety net is a stop loss.
Stop loss is a perfect tool that can save us from the dropping price no matter whether we are dealing with the retracements or reversals. Even when you see a perfect growing trend, never stop remembering and thinking about the possibility of the price turning on you.
Well, ths little tip might just save your trading budget in the future trades. Just remember to use it.