Comment on Single Candlestick patterns (Part 1)

Ajmal commented on 23 Mar 2017, 09:57 AM

Excellent article on how to interpret the candles. I would like to add a few points to the discussion hoping someone would benefit if it makes sense else I would learn something if somebody corrects me. Each day is a learning opportunity. While anticipating trades on a bearish marubuzo the ideal case would be to short on the closing price expecting the trend to continue and the price to go down. An important point to consider is that if you dont have a stop loss then your risk is unlimited. Price of the stock can go to any number overnight and you might end up in a very bad position . Risk taking definitely pays off but you should definitely have a plan and have a stop loss. While on a Bullish Marubuzo the worst situation you can be is when the stock value reaches 0. It’s OK to make a loss but the best trader knows to minimize his loss.

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