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Daily and Monthly Stop Loss Limits

Posted By On 5/10/2007 06:46:00 AM Under
Stop loss is an essential weapon in the armory of a stock market day trader and if effectively used one will be able to ride the profit making positions and cut down on loss making positions. Even if Profit to loss ratio in trades may not be favourable to you but by following below stop loss tested figures one will work out to become atleast a Millionaire. The analysed and reserached figures post live testing in stock market is as enumerated below:

1.Keep monthly stop loss of 6% of your trading capital.

2.Keep daily stop loss between 1.25%-2% of your trading capital.

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