Educational Post📕
Sticking to stop loss is a must to do when (BUYING the DIP)
Opening a position without setting a stop loss is a big mistake and it can be disastrous when buying the dip !
Here, we show a tempting setup to open a long position in rectangle (1). It is of course OK to go long in this setup in the hope of catching possible up coming up going wave shown in green.
But without setting a stop loss? Not at all ! Followings are just two simple possible scenario which may happen:
Rectangle (2) shows a scenario which may happen if lucky. Although it will bring us profit, believe me it bothers all the traders a lot emotionally.
Rectangle (3) shows a terrifying scenario which can whip out all our capital ! Please keep it in mind that " Preserving capital is a first rule of trading ". If you think this is an unrealistic scenario just take a look at #ETSY , #SHOP, #SQ and #ROKU.
@TechBusinesses
1December 9, 2025 235 1
