Hi Nishant,
Well Nishant that's the smartest thing to do. You should ALWAYS place a SL when trading for that matter even while investing.
Coming to the point about the SL being triggered. It could be either because you're carrying a bias about the trade itself because of which you're changing your stop losses or calculating the wrong stop losses due to lack of clarity. Or you don't yet know how to define your pivots or another could be that your pivot definition is flawed which is resulting is the wrong stop losses hence the triggering and the reversal back.
Advise that's made me money -
- The SL is never based on your account size or your pocket. It's always based on the technical charts and the security you're trading. Skip the security and pick another one if it does not fit your pocket at that time. You'll get to trade in it later.
- There are many a ways in which you can minimize your entry SL by further analyzing the security. Specially by entering at another level with another SL accordingly. It's does not have to be ''then and there or the end of the world', never.
- Know everything BEFORE you enter! Trading/investing is the smartest game and you really have to know almost everything the security will do before you enter a trade, not while & definitely not after you enter into a trade/investment. And YES it is absolutely possible to know almost everything that will happen, at-least around your entries and exits then later on you can just have a larger picture approach.
- Candlesticks! They are essential, you need to know everything there is to know about candlesticks. Every candle (no matter what time frame you're in) tells a story about what's happening. It literally is your visual description of what's happening and what will happen. They are also great pivot tellers.
- When something goes wrong, YOU went wrong! The market is never wrong. The best part about it is that you need to find a missing piece in your understanding of the market (learn) and then you'll be better off the next time around.
(I'll be sure to add anything else that comes to my mind but that's all for now).
Regards,
Ravi Chandra.
