hello friends,
we all know that there a number ways to trade in the market but most of all i consider the stop-loss technique a profitable and safe one.
Before you even consider entering a trade, you should determine your stop-loss point. Your stop-loss point should be set at a price that you're willing to sell your stock at should things turn bad. The price you pick will vary depending on your financial position and the particular stock being considered.
For e.g. you may want to set a stop-loss exactly 8% under your purchase price, or you may want to set it just below some clear resistance in a chart. The most important thing is to test your system. If you set your stop-loss too close, you'll never be in the game when the stock turns good. If you set your stop-loss too far away, you'll end up losing too much money.
Modern trading systems have completely automated stop-loss systems. This makes it so easy to set stop-losses that you have no excuses for losing big in a single trade anymore! In fact, you're mad if you don't take advantage of stop-losses. The only trick is setting them wisely. You'll learn how to plan and time your entry and exit points on this site over the next few months.
This learnt from a trader who was trading with Angel broking a while back, he says it works most of the times.
