1. Avoid holding a stock where one starts fearing holding the stock i.e. one should book the profit and loss at the time when stock moves past the psychological zone of comfort.
2. Mechanically book profit or loss at the stop loss or stop profit booking levels.
3. Keep the losses under control.
4. Remember one can book profit in a stock and may enter in same stock at slightly higherr levels and thus do not feel guilty for the same.
5. Always be along with the trend of the stock market and while going long see that long term trend is intact & reason exists to take exposure.
6. Identify quality stocks and buy in those stocks at "buy" triggers for the stock.
7. Hitting a stop loss may also mean that something may be wrong with your technical analysis where incorrect stop loss was applied or short-term trend changed. Follow the stock which has hit stop loss as it may happen that the stock bounces back after hitting stop loss level and thus thereafter reverse the position.
8. Avoid throwing good money behind a falling stock as it is like a falling knife.
9. If one is not comfortable with any stop loss method then one can use the fixed money-based stop method, which fits into as per an individual risk profile.
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2. Mechanically book profit or loss at the stop loss or stop profit booking levels.
3. Keep the losses under control.
4. Remember one can book profit in a stock and may enter in same stock at slightly higherr levels and thus do not feel guilty for the same.
5. Always be along with the trend of the stock market and while going long see that long term trend is intact & reason exists to take exposure.
6. Identify quality stocks and buy in those stocks at "buy" triggers for the stock.
7. Hitting a stop loss may also mean that something may be wrong with your technical analysis where incorrect stop loss was applied or short-term trend changed. Follow the stock which has hit stop loss as it may happen that the stock bounces back after hitting stop loss level and thus thereafter reverse the position.
8. Avoid throwing good money behind a falling stock as it is like a falling knife.
9. If one is not comfortable with any stop loss method then one can use the fixed money-based stop method, which fits into as per an individual risk profile.
Subscribe To Get Free Stock Market Tips in Email Here
