IMPORTANCE OF TRADING STOP LOSS :
Managing Risk In Equities is most Important.
Risk Management is Important in everyday Life weather you are Business owner ( Small , Medium or Large) ,Employee or Investor.
Risk Management Becomes Even Critical if one is in to Futures and Options Trading Business
When you Go out of your Home.what you Do? you Simply Lock your House & Go out Safely.Similarly Putting Trading Stop Loss is very Important in Equities for Protecting futher Loss or To get bare minimum profits.
The Way we Buy Insurance for Bike & Car.Even For Trading bets we should Do proper Risk Management.
Similarly Trading stop Loss is also very important.Also know as TSL ( Trailing Stop Loss)
You Have bought shares of XYZ at 45.After holding stock for 6 months stock moves to 70.Now you have 2 options either book profits here or Keep TRAILING STOP LOSS around 60 ( Find out Support levels or Retracements levels) & Wait for higher targets.So even If stock comes down you make bare minimum sure shot profits.
“Never let profitable trade Turn into a Loss trade”
Disc – All views expressed are personal and only for Educational and study purpose only. Consult your financial advisor before investing.