Let me cover what I personally do when I encountered with SL hit.
-> When my stops are hit and I take a loss, I stand back and review the market action for two possibilities:
1. My analysis was wrong .In that case,I try to see if I can reverse my position in the same trade because a failed breakout in one direction leads to a strong move in the other.
2. I try to see if we are in a choppy phase of market if that is the case ,I just fold my hands and sit back because my experience suggests that only market trends give traders money; and choppy markets take all of it, and more, back.
Worst action in a choppy market would be to go on making trades in both directions in the hope of finding on profitable trades. Often I also reduce my volume to nominal if I do have to test waters. The market is like a girlfriend; if she says no, gentlemen must take that as a no.
Read the last line twice & Just mind it😂
Any way that’s it from my side.
Good night.
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