MoneyMunch

Understand first who you are as a trader…?

Understand first who you are as a trader.  Do you like to daytrade?  Do you prefer swing trading?  What is your risk tolerance level?  Everyone has a unique style and situation.

As a result, what might be a great entry point for a swing trader may turn out to be a not-so-good entry for a Day trader…?  A trader with a low tolerance of risk might find that trade far too risky.

The key here is to know why you’re entering a trade, what it would take for you to exit (stop loss) and an appropriate target.  These should all be determined BEFORE you enter the position.  Many unsuccessful traders have one or two of these criteria figured out before they enter the trade.  It’s the third one that derails them.

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The Moneymunch editorial staff is a team of experienced financial writers and analysts with over a decade of experience in the financial markets. They have previously contributed to popular financial blogs and newspapers, and are passionate about providing accurate and up-to-date information to help both investors and traders make informed decisions. Trust the Moneymunch editorial staff to provide reliable and effective financial advice that can help you achieve your financial goals.

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