 Risk management Hey, what's up money geeks mr. V here welcome to another video guys so in today's video I want us to take a look at when to you know cut your losses and run away a lot of people lose money They're trading so the question is at what point do you decide to to stop? And get out and not blow up your account because you're hoping so wouldn't take a look at that into this video But before we get started guys if you're new to the channel We talk about how to earn money how to save money how to invest and build wealth So if that's something that interests you go ahead and hit that subscribe button and the notification bell so you don't miss out on new content So most people blow up the account they training because they they're hoping that or it's gonna bounce back So before you get into any trade for day traders in my experience again I'm not a professional day trader everything I'm telling you guys is my personal experience that I've actually learned over the years So when you get into a trade you have to have what I call your exit strategy Don't go in there without a strategy because that's gonna lead to you blowing up your account really really fast And then the one thing I want to tell you right now is that hoping when you're day trading doesn't work Don't hope that it would it would bounce back No, if it doesn't go your way cut your losses and run and sometimes you would cut your losses too quick And then you sit back and be like I wish I'd stayed in that trade just a few minutes Oh, and then the next thing is the other one would be like man I wish I had exited that trade, you know a long time ago because it just keeps going down So you need to develop an exit strategy So take for instance, if you go into a trade and let's say you buying a stock at $10 a piece And you're looking at all the numbers you anticipating that that thing will squeeze up and maybe break 10 50 11 So you can make some profit and then your exit strategy would be if you think if you think I go in at $10 if He if he just kind of goes down to 9 50 get me out. I don't even want to I Rather get out and then wait for another confirmation before I can get back in But most people what usually happens is they don't have that exit strategy They go in at less than $10 and it drops down to 9 50 They in their mind the thing is like oh this thing might bounce back and then go back to 10 to 11 to 12 And you'll make some profit next thing, you know, it drops down to 2 to 9 now You're down a dollar a share So if you if you went in or a hundred shares think about that that's you losing money at that point The next thing is if you don't cut your losses early if it keeps going south You're just gonna sit there with your fingers crossed hoping that again I'm using the word hope because again for day trading if you don't have that strategy of hoping boy Are you gonna be a sad person? So always go in with a mindset that I am willing to take my losses early and get out Rather than sit there and blow up my account so quick So your exit strategy again, you can use your stop loss. That is for status If you are just starting this is where stop loss comes into play in with Weeble That's where I especially like the platform is that you can actually set that stop loss Upfront so if I'm going to a trade you can say I'm going in At $10, you know set my limit order to 10 and then my stop loss at 9 50 in my tech profit I'd say 11 or 12 depending on your analysis and then so and the good thing is you can always move that Stop loss and you can move that take profit is less of the stock moves up to $11 and you stop was at 9 50 now I can move my stop loss to say 10 50 because of that point I'm secure some profit. I don't know if that makes sense So imagine that you you go into a trade your stop loss is 10 is 9 50 And your take profit is say $12 the stock goes from 10 to 11. So you're up a dollar a share So now what I'll do is I'll move my stop loss from 9 50 to 10 50 because at that point I'm securing 50 cents a share in profit And that is the best place that you want to be as a day trader So if you get to the point where you can secure that profit boy, oh boy, it is beautiful and you're just sitting there looking It's like men But with Weibo after our trading doesn't allow you to use stop loss and take profit So you can only do that during a normal hours. That's 8 30 to 3 p.m. Center time my time. So Again here guys, I just want to let you guys know this strategy that You don't want to blow up your account because just the little things that you do will blow up your account so fast So always if you're starting out use stop loss really like you're not that would help you a ton You would cut your losses so quick and get out Again in cases where you you you see like hey, I'm starting to make some profit Then you move your stop loss and move it upward. So If you have any questions with this particular question because that's something that a lot of people have been asking me And and I've seen people complain about it's like oh, I blew up my account and now I have to restart all over again So I Prevent this and you help yourself just stop this headache from not from happening by Making sure that you have an exit strategy Again, if you're using Weibo you set what you want your exit strategy to be if it's $50 you go in and say, okay If it if it's 50 cents, excuse me, you go in and say, okay, I don't want to lose 50 cents Per share and is in this in this trade. So you go in if it drops down 50 cents like get me out You take your take profit you can say I want to make a dollar 50 or two dollars And if it goes up and then you move your stop loss and just Gradually follow that trade along the way. So that would be the strategy that I would say you can actually implement It's going to help you a ton So if you are looking to get started again, Weibo is a platform that I currently use Right now they're doing a promotion where they're giving out two free stacks For you to get started just opening an account and depositing a hundred dollars So I'm going to put a link in the description. You can definitely go check them out Again, if you have any questions Or comments, just leave them in the comment section below I do answer all the questions and comments that I get here on the channel So don't hesitate to drop any comments and as always guys Stay motivated You