This is one of the many mistakes traders make when they experience the rush of having a winning position and feel like they’re on top of the world. The actual facts are that traders in this situation often abandon their initial analysis and miss out on more potential profits.
Why does this happen? David explains that the market never moves in a straight line and needs enough time to reach the targets we might have set. The frequent pullbacks within a trend are one of the main culprits for triggering Stop Loss orders, especially when you move them closer to the current price.
This video focuses on the circumstances in which this happens and highlights the importance of discipline and the correct mindset when it comes to moving – or rather not moving – your Stop Loss.
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.