3 Ways to Calculate Loss Limit

Trading carries a very high risk, therefore traders must be careful when trading. Prudence is meant to limit risk. No matter how great and as good as anything without restrictions it will definitely run out. Therefore, the first thing a trader must do is be able to limit risk by means of a stop loss or manual close (cut loss). Stop loss is not mandatory but limiting losses is mandatory, so you don't always have to use a stop loss if the trader is really trained. Risk limits that must be prepared must be realistic. The first is the percentage of 2%-5%, the second is 400-500 pips (XAU), and finally the closest support and resistance. Watch the video below for more clear and detailed information!


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