[fusion_builder_container background_color=”” background_image=”” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ background_repeat=”no-repeat” background_position=”left top” video_url=”” video_aspect_ratio=”16:9″ video_webm=”” video_mp4=”” video_ogv=”” video_preview_image=”” overlay_color=”” overlay_opacity=”0.5″ video_mute=”yes” video_loop=”yes” fade=”no” border_size=”0px” border_color=”” border_style=”” padding_top=”20″ padding_bottom=”20″ padding_left=”” padding_right=”” hundred_percent=”no” equal_height_columns=”no” hide_on_mobile=”no” menu_anchor=”” class=”” id=””][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_title size=”1″ content_align=”left” style_type=”underline solid” sep_color=”” margin_top=”” margin_bottom=”” class=”” id=””]What is stop loss?[/fusion_title][/fusion_builder_column][fusion_builder_column type=”3_4″ last=”no” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=””][fusion_text]
When a traders trades by placing stop loss then it is a sign that he is trading by taking calculated risks. We advice all stock traders to follow this practice to minimize your losses. There are two different ways to place stoploss, protective and technical stoploss.
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Protective stop-loss is a method by which the trader sets the stop-loss according to the amount which he is afford to lose for each trade. Protective stop-loss is defined by keeping the trader risk appetite in mind.
[/fusion_flip_box][/fusion_flip_boxes][/fusion_builder_column][fusion_builder_column type=”1_2″ last=”yes” spacing=”yes” center_content=”no” hide_on_mobile=”no” background_color=”” background_image=”” background_repeat=”no-repeat” background_position=”left top” hover_type=”none” link=”” border_position=”all” border_size=”0px” border_color=”” border_style=”” padding=”” margin_top=”” margin_bottom=”” animation_type=”” animation_direction=”” animation_speed=”0.1″ animation_offset=”” class=”” id=””][fusion_flip_boxes columns=”1″ class=”” id=””][fusion_flip_box title_front=”Technical stoploss” title_back=”” text_front=”” background_color_front=”#ffffff” title_front_color=”#1e73be” text_front_color=”” background_color_back=”#1e73be” title_back_color=”” text_back_color=”#ffffff” border_size=”1px” border_color=”#1e73be” border_radius=”4px” icon=”fa-signal” icon_color=”#ffffff” circle=”yes” circle_color=”#1e73be” circle_border_color=”#1e73be” icon_rotate=”” icon_spin=”no” image=”” image_width=”35″ image_height=”35″ animation_type=”fade” animation_direction=”down” animation_speed=”0.5″ animation_offset=””]
Technical stop-loss is a method of deriving stop-loss based on market levels, such as support and resistance levels. It enable trader to stay firm on his positions as long as the trend remain intact.
[/fusion_flip_box][/fusion_flip_boxes][/fusion_builder_column][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_title size=”2″ content_align=”left” style_type=”default” sep_color=”” margin_top=”” margin_bottom=”” class=”” id=””]How to place appropriate stop loss?[/fusion_title][fusion_text]
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Calculate how much total risk you can afford to take for a trade.
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For eg. Rs.1000 per trade, this is noting but a amount you can afford to lose without bothering you emotions and other trades
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Identify the technical support zone or resistance zone to protect your trade risk
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For long position, the support zone can be viewed as stoploss
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For short position, the resistance zone can be viewed as stoploss
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Measure the difference between the entry level and stoploss level, qualify as risk
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For eg. Buy Infy above 1030, Stoploss 990 and Target 1080, Then Risk = Entry (1030) – Stoploss (990) = Rs.40 / Per Qty
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Identify the trade size by understanding your total risk with the technical levels in mind.
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Since trader can afford total risk of Rs.1000, he can trade only 25 qty.
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Trade Qty = Total Risk (1000) / Risk per Qty (40) = 25
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[/fusion_text][/fusion_builder_column][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_title size=”2″ content_align=”left” style_type=”default” sep_color=”” margin_top=”” margin_bottom=”” class=”” id=””]To conclude.[/fusion_title][fusion_text]
For intraday traders as well as positional traders trading with placing stop-loss is very important. This help you to cut your losses. We at EQSIS train you to become an efficient stock trader with the help of professional stock trading and analysis training.
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