Tip 1: Limit your trades

If your first 2 trades are profitable, consider ending your trading day. However, if you’re confident about a 3rd trade after 2 successful trades, ensure that the stop loss is not more than 20% of the profit from the previous trade. On the other hand, if the first 2 trades result in losses, it’s best to stop trading for the day.

Tip 2: Balanced approach

If you have 1 trade that’s profitable and 1 trade that’s a loss, you can proceed with a 3rd trade. This balanced approach can help you manage risks while still pursuing potential gains.

Tip 3: Risk-to-reward ratio

Always aim for a risk-to-reward ratio of at least 1:2. This approach can help ensure that your potential gains outweigh potential losses, contributing to a more sustainable trading strategy.