Since I started keeping stoplosses, I have come across a dilemna, I have actually made some losses due to stoploss. It has happened many times that stop losses have triggered & the stock value has then hit the target & this happened very soon, just after the stp loss was triggered, the same day or next day. For e.g Just some days back, my RM had given me a target, I had found that the price was going down& I called him to ask if I should put the stoploss, he advised me to wait,just next day , the target price was hit.& I am not talking about intraday targets,I am talking about delivery targets.
Now, you might say that think of the losses that i have managed to stop by using stop loss, they are worth a few minor exceptions like this.But in my case, I have almost had equal amount of profit/loss whether I had kept stoplosses or not.
Am I saying that stop losses should be avoided? Of course not, no trading system is successful if it doesn't have stoplosses. But there must be a stop loss stratgy as well, maybe one such as
1. Reduce the stoplosses in a fluctuating market.
2 Or see the nature of fluctuations in the chart of the stock.
3 Maybe if its a blue chip company, the stop losses can be relaxed.
I don't know. I would like to hear from more people.
Now, you might say that think of the losses that i have managed to stop by using stop loss, they are worth a few minor exceptions like this.But in my case, I have almost had equal amount of profit/loss whether I had kept stoplosses or not.
Am I saying that stop losses should be avoided? Of course not, no trading system is successful if it doesn't have stoplosses. But there must be a stop loss stratgy as well, maybe one such as
1. Reduce the stoplosses in a fluctuating market.
2 Or see the nature of fluctuations in the chart of the stock.
3 Maybe if its a blue chip company, the stop losses can be relaxed.
I don't know. I would like to hear from more people.
