How to set stop loss for your stock trading positions

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 If you make entry in a position at a right level, stop loss will not be deep. Stop loss levels and target levels should determined before entering a trade. They should be recorded. Stop loss helps traders to sell a stock when it reaches specific price levels to minimise loss. 

Figuring out where to place your stop-loss depends on your risk threshold and nature of the stock.

First method is the percentage method - it limits the stop-loss at a specific percentage levels which become stop loss level 1 (SL1) and stop loss level 2 (SL2) . For example, for a volatile stock, SL1 may be at 10% and SL2 at 15%. For a less volatile stock, these can be at 5% and 10%.

Second method is the support method - an investor determines the most recent support level of the stock and places the stop-loss just below that level. The third is moving average method - SL1 placed just below short term moving average and SL2 placed just below a longer-term moving average price. Twitter : @mkmunir3 Join our channel : https://t.me/joinchat/j0a21Mz4KShkZDY9 You will need to install the telegram app. 

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