#StopLossStrategies A Stop-loss strategy is used to avoid more losses when the trend goes against the trade decision by automatically exiting the trade at a threshold point. It is a great option and is a personal choice for day traders to use and avoid losses after a certain price dip. Stop-loss order strategy is often used with the swing low and high to avoid more losses as they are risky and can incur more losses than usual.Nirmal Bang





Please fill in your details Registration closes in08:15Minutes!

GET OTP

GO TO STEP 2

(You will receive a Call & SMS from our end)

freedemataccount openingrs5,00,000personal accident insurance *rs50,000accidental mediclaim *







Stop Loss Trading Strategy in Day TradingHomeknowledge centerStop Loss Trading Strategy in Day Trading

TABLE OF CONTENT

What is Stop Loss Trading?

Day Trade Stop Loss Order

How much to set in stop-loss order?

Resistance and Support

Stop Loss Trading Strategy in Day Trading

The Stock Market is a highly volatile field, and where it can help you earn more profit, it can also incur heavy losses. There are many situations when traders want to avoid high losses, such as when using a short-selling strategy, and it is true especially with the day traders who have just bought a stock, but the trends go against their decision. In such a case, the best viable option to exit the trade is to use the stop-loss trading strategy.

What is Stop Loss Trading?

When one is day trading, there is a huge risk of the trend going against the decisions and can incur huge losses. The day trader can use the stop loss order strategy at a certain level of losses in number, and when the trend of losses or downward trend reaches this point, the trade is closed automatically to avoid any more losses. It is not a compulsion to use the stop-losses trading strategy and is a personal choice, but it eventually reduces the risk of higher loss when there is no expectancy that the trend shall go upward at the end of the day.