Key to winning in the stock market is – keep your losses small
Most of the traders book small profits and large losses, why? Because, they actually face problem in a exit decision. Exit means – close your trade in profit or loss. Come look at this awesome tutorial to find out how and where to make exit decisions.
Putting correct stop loss
A stop loss is a trading decision where we admit that our analysis went wrong and we have to limit our losses. So, you have to close your trade. Suppose, you have bought shares of TATA steel at INR 400 and prices fall down to INR 390. What will you do? Will you sell the share you bought at INR 400 and book a loss of INR 10? or you’ll wait for the price to reverse and go back above INR 400?
What if price fall further to INR 370? So, exit at the right time is very important. Let’s learn in the about video where to place the right exit or stop loss !
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