Protect You Self From Reversals
I said before, reversals can happen at any time. Retracements can turn into reversals without warning.
This makes using trailing stops in trending markets very important.
With trailing stop loss points, you can effectively prevent yourself from exiting a position too early during a retracement and exit a reversal in a pinch.
You don’t have to be shot down by the “Smooth Retracement”. You don’t have to lose all those pips.
Just know how to distinguish retracements from reversals.
This is part of growing up as a trader. Having the ability to do so will effectively reduce your losses and prevent winners from turning into losers.With lots of practice and experience, you’ll find yourself being able to trade accordingly to retracements and exit with a profit more times than not.