Magnora ASA is a Norwegian company operating in the field of renewable energy and sustainability. They specialize in the development, investment, and operation of projects related to wind power, solar energy, and other renewable forms of energy.
The stock is currently in an upward trend, characterized by the establishment of Higher Highs (HH) and Higher Lows (HL). Recently, it broke through a falling wedge pattern, indicating a continuation of the trend.
I have taken a long position with a Risk-Reward Ratio of 2.5. The stop-loss is placed just below the trendline, while the price target is set at the resistance level to optimize the profit.
I plan to provide an update in the comments section once the stock price reaches either the price target or the stop-loss.
@Pj97 Effective risk management is crucial in trading to mitigate potential losses and protect capital. Establish clear risk-reward ratios, diversify your investments, and use stop-loss orders to manage downside risk. Regularly reassess and adjust your risk management strategy based on market conditions and your own risk tolerance.
I don't statically set my stop-loss percentage; it varies based on stock volatility, support levels, trendlines, and overall market conditions. In this example, I am willing to accept a loss of up to 8%.