There is general perception among the traders that if you place a stop loss order, it 'll be taken out sooner than later.
Even I published similar idea in one of my posts (I ll tag below later).
So "Stops get taken" is the general concept. Is it valid or not? Let us check with a simple logic and a few assumptions.
I am using a simple assumption that stops get...
Put 10k in the market, buy stocks worth 50k or more on leverage and sell at 1k profit which is 10% profit on the investment capital..That's amazing!! Isn't it?
The bad part is, the anomalies to this hypothesis adversely impacts more than 90% of time. And the so called 'better business' turns out to be a losing affair for more than 90% of our trading...
All the post are on trading /technical analysis. So thought of putting something on risk management .
What is Risk Management ? Now don't look blank, if your in markets you have to know about it.
Does every trade has risk and Is quantum of profit assured ? Yes every trade comes with risk and no assurance of profit.
How much risk can you take ?