Want to know the key to winning trades?
In Ilczyszyn's opinion, it's discipline. Traders need to know when to get in and when to get out of a trade. In other words, have a game plan.
"That's what stop orders are all about; Formulating a plan on how much you are willing to lose and how much you are hoping to make," Ilczyszyn said. "By placing a stop order, you're taking the emotion out of the trade."
A stop order can be defined as an order to buy or sell at a specified price, which is used to limit losses and lock in gains.
To determine entry and exit points, Ilczyszyn said traders should ensure the exit point or "profit target" is further away from the entry point or stop order.
"Allow your trade to make more money than you can lose," Ilczyszyn said. "Most professional traders will tell you that you want to have at least a 2-to-1 risk-reward ratio."