Top 5 Risk Management Strategies for Stock Traders in the Netherlands
Don’t over-monitor the market and your stop loss
The first risk management strategy for stock traders in the Netherlands is to limit losses, and it’s probably surprising that I didn’t start far more apparent advice such as: always set a stop loss when trading.
This mistake comes from every blog post or YouTube video about trading or investments, starting with advice on how important it is to have a stop loss in place.
I know it’s essential, but you’ll probably agree with me: setting a stop loss works only part of the time and can be highly emotionally draining because we constantly (and mostly subconsciously) monitor our trades and the market.
When we see signs of an adverse move, we tighten our stops, and sometimes we even exit positions too early because we want the pain to stop.
This is why I believe in a different approach: limiting losses and …
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