The Thief of Wall Street
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The power of placing your stop guided by a long wick
Many newer traders will tend to decide on where they will place their stop based on the amount of pips that they are comfortable losing. Maybe that number is 10, 50, 100, 200, or whatever. The point is that the number is arbitrary and, most likely, bears no relationship whatsoever to the price action that we see on a chart. A more effective way to decide where to place your stop is to look for levels of support in a buy or levels of resistance in a sell. When buying the stop would go below a level of support and when selling the stop would go above a level of resistance. (Of course the placement of these stops must ... (full story)
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