23 June 2010

Topic5:STOP LOSS (part 1) :mrtq13

Depending on your trading style this percentage should be set. For example,if you are a long term trader, you could tolerate 15% fall of price from your buy point. Because you are holding it for a long term. And on your way,the price could fall 15%.........Or,if the stock is good enough,you can tolerate 20% fall of price from your buying price………..So,it is up to you……….If you are a short term trader or your investment capital is low,you could tolerate not more 6% fall from your buy price…….
What if you exit after 7% lose and then the stock starts to rise….  You re-enter…..You have nothing to do… And it could be that after you re-enter,the stock could start to fall again…….

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