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Whipsaw, Risk & Stoploss

After placing a trade you will notice the share price may jump around, going higher than lower, it whipsaws from one price to another. If you have set a low stoploss it means you have a low tolerance to risk. Having a low risk appetite the quicker you will be stopped out of a trade whilst on the other hand accepting a high degree of risk there is a possibility to lose a lot more of your money if the price moves against you. (you can never win)


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