🛑 Stop Loss
A stop loss is a predefined price level where your trade automatically closes to limit your loss.
It is the most important risk management tool in trading.
🚫 No stop loss = gambling
🎯 Why Stop Loss is Important
Even the best traders lose trades. The difference is they control how much they lose.
A stop loss protects your capital and keeps you in the game long-term.
- ✔ Protects your trading account
- ✔ Removes emotional decision-making
- ✔ Keeps losses small and controlled
💡 You cannot win every trade—just keep your losses small so your profits end up bigger overall.
📍 Where to Place Stop Loss
Your stop loss should be placed where your trade idea becomes invalid — not randomly.
- Buy Trades: Below support or recent swing low
- Sell Trades: Above resistance or recent swing high
🎯 Logical placement = better survival rate
📊 Risk Example
Buy at ₹100
Stop Loss at ₹95
Risk per share = ₹5
If you buy 10 shares → Total risk = ₹50
💡 Always know your risk BEFORE entering the trade.
⚖️ Risk Per Trade
Professional traders risk only a small percentage of their account per trade.
- ✔ Recommended: 1% – 2% per trade
- ✔ Prevents blowing your account
🔥 Survive first — profit later< When you know how to protect yourself you survive and thrive better!>
⚠️ Common Mistakes
- Moving stop loss further away (hoping price comes back)
- Not using a stop loss at all
- Placing stop loss too tight (gets hit easily)
🚫 Never widen your stop loss after entering a trade. A loss is a loss learn to take and accept. Plan next one better.
🚫 Expecting from the market will consume your capital. Every desicion should be final.
🧠 Trader Mindset
Using stop loss requires discipline. Accepting small losses is part of becoming profitable. learn to stay in the play for long enough to make it out alive.
💡 The market gives small losses, you create the bigger ones.
🚀 Final Tip
Your entry can be wrong — but your risk must always be controlled.
🎯 Never follow any Gurus or 100 percent profit makers, these often end up behind Macdonalds register.