FOREX THEORY
Protect Yo Self From Reversals
Whenever Happy Pip goes swimming at
the beach or the pool, she always wears her hot pink rubber ducky floaters.
Whenever she trades retracements, she uses stop loss points.
Pink rubber ducky floaters are life
savers. Stop loss points are capital savers.
As we said before, reversals can
happen at any time. Retracements can turn into reversals without warning.
This makes using trailing stops in
trending markets very important. With trailing stop loss points, you can
effectively prevent yourself from exiting a position too early during a
retracement and exit a reversal in a pinch.
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