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How Professionals Trap Retail Traders?

Posted By On 1/31/2008 10:24:00 PM Under
1. A retail trader places a stop loss as per the guideline and with a heavy heart see the stock touching the stop loss and the trade is squared.

2. However professionals are shrewd and they make the weak hands i.e. retailer shed their position by making a stock touch the stop loss which is known world wide.

3. Thereafter the professionals make the stock move up and thus the importance of placing a bit deeper than the advocated stop loss will yield better returns.



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