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One of the cardinal rules of good trading is always to have an exit point before you enter into a trade. This is your worst-case risk for the trade.
Source:Super Trader http://www.amazon.com/gp/product/0071632514?ie=UTF8&tag=a0b8a8-20&linkCode=as2&camp=1789&creative=9325&creativeASIN=0071632514
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