How Stop loss Order Can Be Make Your Loss Unnecessarily In Trading

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Stop loss order making your loss in trading you know that.....are you stop a loss trader then know and learn how.....

You are wondering by reading the above title but their practical mode are to be more wondering because this is true if you are a good trader then you know this and have faced this state many times already in trading.

The stop loss concept is normal for old traders but it is new for new peoples or may be they are unknown for This. So the story is, I was thinking about trading that how we can make it better and effective with limited money and tools and earn good profit form it but suddenly the stop loss order concept came in my mind and immediately I thought traders are losing money because of wrong position ,wrong techniques , analysis and ideas but they also losing money mostly in trades because of stop loss order unnecessarily in trading I though I should tell about it and give an idea to traders about it ,may be lost of trader know this.... So after In the night when I was looking moneeasy Instagram account then I saw the bseindia status on Instagram and wondered about it because in that status video they was also showing how stop loss can make your loss the date is 21 may 2021 at after 10 pm in night. If your are following the BSE India on Instagram then you know this or seen this but then also see the video. if you get it anywhere share to others also.that was running on any of one news channel.

So let's know how stop loss can be make your loss during trading

What is stop loss
In simple words this is option or order to prevent trader (you) from having big loss. Stop loss helps you to prevent your loss or reduce your loss or make a calculated known loss.

Stop loss doesn't stop you from loss it helps you (trader) to reduce your loss. Keep in mind this.

When you trade in the market then you use stop loss order because this is market and it can be up or down within seconds anytime and you know that, so you place the buying or selling order with stop loss order and trade. but if you see carefully and think on it then you know and realise that you will have loss in your trading sessions or not, but because if you are using stop loss order then you are losing money definitely. Because every time you set stop loss order because price fluctuations and in that stop loss price can hit and complete and you out from that trade safely thinking that you prevent your big loss but that stop loss order price was unnecessary or wrong and you are thinking you exited safely and right point but this is not the truth.....

How To Trade In The Market Safely

Here take an example
When you buy stock at 500rs an set stop loss order at 485 or 490 rs and you think the price will up and down for some period and this is normal in market I know it but may be that trade will be a down side trade and still you are thinking it will reduce by some price and again it will gain and hit the target which you had set but what if that is actually a down trade then stock price will go down and hit your stop loss order and you will have loss that is set stop loss loss without any reason, then what you say here your position is wrong or trade is reverse to your plan... what.......?
How To Do Intraday Trading Smartly

this is not effective trading if you see it carefully ,study and think on it seriously then you can understand you will have loss because of stop loss order and this not happens some time only because you are setting the stop Loss order evey time when you trade in the market and if the price start decreasing instead of increasing. it will hit your stop loss order evey time and you will have loss every time. Not because of wrong position or stock but because of your stop loss order and that is fix because you don't think much because you have set the stop loss order and you are trading like this and thinking if trade goes wrong your position will exit automatically and you will have less loss but in actual you don't think you are also losing money because of wrong stop loss and stop loss order.

Because if the trade is going reverse and you realise it then immediately you need to take exit but you don't do this and wait thinking price will be gain but that wait make your loss and then you understand this is actually down trade and might be you could reduce your loss by taking exit immediately. You as a smart trader need to think about it.

What you need to do about stop loss in trading

This doesn't not mean don't use stop loss order or stop loss is wrong but use it wisely and smartly because if you study your trading session and graphs then you will realise it that you don't need to use stop loss order in every trade some time its ok to Trade without stop loss in trading and can exit in profit surely. And some time you can use stop loss order but where it necessary and at right place. That makes a sense in trading and make it effective and result is save your money and you will get profit.

Know why and who needs to be use stop loss order in trading

• If your are trading with big amount Like in lacks and with much quantity.

• If you are trading In multiple stocks at same time so there you cant control every trade and need to must set the profit margins as well as stop loss

• You are trading in every stock alternately to make money because your a trader.

• Use whenever it must during trade and in unpredictable conditions.

• When Your quantity is large and profit margin is less and you need to enter and exit fast and frequently then use properly.

• But you are a small trader trading with limited amount and in less stocks then you don't need the stop loss order every time because there you are present and you can exit the position at that point by placing selling order or changing your selling order according to share condition.

What you need to do in this case

• Trading is not easy, in it many things included you have to focus on all at same time.

• So as a smart trader you adjust that stop loss order as per the trade direction and market condition.

• You can stop the placing stop loss order evey time.

• Don't full rely on stop loss order change it if you think things may going wrong.

• Place the right stop loss order that is neither too close to buying price nor too long from buying price it should be right and need to be adjust as per current situation.

Where do you trade to make more and safe profit

Advantage of adjusting stop loss price

Stop loss helps you to reduce your loss but if you are smart trader and adjust it price wisely then you can reduce the loss which is because of your stop loss price and that is fixed if trade goes revers or price suddenly decrease.

Stop loss is to help traders to reduce or limit their loss but if you use this option wisely and balance it in different market condition you can turn it into profit from stop loss loss or save that money from being lost in stop loss process.

Now you think and ask me we are using stop loss because we know it can goes down or reverse any time and we know that how much loss we will have if this happens......this is right but here we are thinking about making trading more better and efficient in which you will have more profit ratio than loss ratio because of if you see example like

a trader making 5000 rs thousands in day with loss of 2000 rs in some trades the total profit is 7000 rs but at end it is 5000 rs because you lost some profit i next trades which he has done. This trade fully based on stop loss and here trader is thinking that if position Is right he will get more profit otherwise there is stop loss and he will lost that gained profit. Now you understand how trades. Lost gained money unnecessarily in trading...are you doing it then think about it and prevent you loss.

All the best happy trading to all...!