Many a times you notices that you
put stop loss in trade and stock just came down in case of buy trade & hit
your stoploss and getting bounce back exact from your stoploss rate and you
lose money. You feel so frustrated and then getting nervous because you lost
money on that trade. Again on some other day you facing same thing and you lost
money in that trade too. What is your feeling now? I just imagine what my Gujju
trader’s reaction words at that time, “Maro
j stopploss khava avyo” or “stoploss
mukiye to khavay j jay”. And then you decided to not putting stoploss in
any trade because of your bad experience in past.
In any type of trading intraday,
positional, swing the role of stoploss is very important as its unique tool for
minimizing your risk while you trading. Yes it’s a tool which protect you from
huge losses and keep you in market for longer time otherwise you lost your
majority of the capital and when time comes for aggressive trading in market
your capital evaporated.
Here the question comes to your
mind that what one trader can do if such type of things happen to any trader
which I already mentioned. See it’s depending on the trader which type of
stoploss they are using.
There are types of stoploss as
below:
1.
Technical
Stoploss : Based on proper level
based on Technical Analysis
2.
Time
stoploss : Based on time parameter which may differ from a single day to
many days
3.
Monetary
stoploss : Traders use by their conviction no technical or time factor be
used
4.
Trailing
stoploss: it’s been using for booking profits and for closing of open
trades in profits.
Now the traders who using the
monetary stoploss may facing the situation that stoploss may always trigger and
you always lose money by putting stoploss while trading. This is just one
belief of some traders who using monetary stoploss.
So be careful which types of
stoploss you are using ?
Happy Trading
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