Ways2Capital: Importance of STOPLOSS in share market.

STOPLOSS in stock market means that you are stopping the loss that is happening in the stock market. This means that you will not lose more money in trades you have taken, because you have stopped loss by keeping stop loss.

For an example like we bought 50 shares of HDFC BANK in RS.1000 and in a trade. So we have invested 50000 rupees in total. Just because these HDFC BANK shares increase by 1000, we will get PROFIT, but this does not happen every time, sometimes the price of the stock decreases. Then we will start to loss, to stop loss, if we keep decided before taking STOPLOSS trades like RS 980, then when the price of the stock is Rs. 980 will come, then all the stocks I have bought will be sold, meaning that we will only lose the RS.20 because We kept the STOPLOSS RS.980, even if the share of HDFCBANK was PRICE share market CLOSE would be RS.900 only after all Only RS 20 will be LOSS.

How to decide STOPLOSS in stock market.
There are lots of ways to keep stop loss but everybody puts their stop loss in the stock market according to their strategy or according to their money strength.

Here are some of the ways in which you can keep stop loss from day trader, short term trader and long term trader, in which you will find all kinds of stop losses, and then you can keep stop loss by looking at your trading style.

• STOPLOSS in stock market with Today’s First hour High or low.
• STOPLOSS in stock market with Yesterday’s high or low.
• STOPLOSS in stock market with Moving average cross over.
• STOPLOSS in stock market with Support and Resistance.

Support means that the stock price goes back to pick up support at a specific price and then goes upwards.
And Resistance means that the stock price gets stuck on the special price, then it comes down to the lower side.
If someone buy a stock in the stock and keep the price at my stoploss and if the price of the stock starts lowering the price, then I sell those SHARES. Means Support My Stop Lossr
Similarly, if someone sells them in the shares and they trade on the price of my resistance, then buy that stock in my Stop LOSS resistance Price.

You can use this Stoploss method for short term and long term, for long term, you can keep stoploss looking at support and resistance on weekly and monthly charts.

Like a stock market tips in commodity, future and option an individual can also receive a recommendation in currency market. According to his individual risk appetite because, in currency derivative an individual can trade with the minimum investment as compare to the equity, commodity and its derivative.

Signature – Mahendra Rajput [Senior Digital Marketing Executive] | Ways2Capital provides mcx tips , Intraday Stock Tips, NCDEX Tips, Forex tips. We provide full support also during market hours. | To get more details- visit us on http://www.ways2capital.com | Contact us on 0731-6626191.