Before opening a position, I always identify all levels for closing a position in loss or profit. These levels are carefully considered and align with my scenario. Today, I’ll share my approach to the SL level and the loss zone of a position.

When I open a position, I’m already prepared for a potential loss at a specific price level and position size. However, to better manage the position, I sometimes decide to reduce losses by partially or fully exiting it.

For making these decisions in the loss zone, I mark key technical points for myself on the chart, such as OB blocks, S/D levels, and support and resistance levels. This can include price pattern combinations, and when the price breaks or closes on a higher timeframe, disregarding a level, it signals that something may be wrong, and it’s time to cut losses.

Of course, whether to close a position entirely or partially depends on how far the price is from the stop level. It wouldn’t make sense to exit entirely when there’s still 90% buffer to the stop, right? No one can know the ideal moment when the price will start moving in the desired direction (unless you’re a psychic or a fraud).

I’m not afraid to reduce or exit a position entirely to limit potential losses.

There’s no room for greed in the market.

You may think this sounds like fear, but it’s not. If fear took over, you wouldn’t even be able to open a new position.

Reducing weak positions is adhering to the core principles of investing and trading: protecting your capital.