Margin of Safety: Why Smart People Leave Room for Error#MarginOfSafety
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The main risk is missing a larger move by exiting early. For an aggressive profile, this is an acceptable trade-off for guaranteed capital protection. Size positions to keep each trade's risk to a strict percentage of your portfolio.

This turns overnight risk from an uncontrollable variable into a simple choice.

#SwingTrading #OptionsTrading #RiskManagement #DayTrading #TradingStrategy #IntradayTrading #TradingPsychology #CapitalProtection #TradingCommunity #ConsistentProfits (4/4)

https://strategyapex.us/risk-management/mastering-stop-loss-placement-for-successful-trading/

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🧵 3/24 Example of Risk Management
Imagine you buy a stock at $100, with a stop loss at $95. By limiting your potential loss to 5%, you protect your capital and stay in the game for future opportunities. The key here is discipline.
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🧵9/10 The key to consistent market success lies not in finding a complex secret but in embracing a straightforward principle: protect your capital first. The rest follows. #CapitalProtection #SimpleTruths

🧵5/6 Subsequent Exits - 5% and 7% Loss:

Second Stage: Another 33% of the position is closed if the loss extends to 5%. This further reduces risk and protects the trading capital.

Final Stage: The remaining position is closed at a 7% loss, safeguarding against more significant downturns.
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