Common Mistakes In Share Market (Part 5)

23 Jun 2022

Sooo here i am going to present the 5th part of this series and i hope that those who are here have gone through the previous four parts earlier. 

Sooo lets begin with the 5th part now

Strict Stop Loss - Before i explain you all my point of strict stop loss first let me explain what is stop loss to the people who dont know this term or have never heard this earlier. 

Stop loss is a mechanism/process/feature which is provided or used by the investor to save their capital from getting into a huge loss. Basically when you select the stop loss option there will be 2 options either they will ask you the percentage after which u want to book your loss or the amount at which you want to book your loss. 

Now people might be thinking that why he is asking to book the losses we are not here to loose we are here to win . Soo let me make it clear that in the share market or your life u cant always win sometimes u need to loose and figure out your mistakes. In case of share market if you see any stock making loss in your portfolio make sure to sell that stock and book your losses and buy some good stock sooo that you can recover your capital from that and also earn huge profit. 

Usually people dont book losses and keep on seeing their portfolio diping and at last when the loss becomes very huge, they loose all money , they need to quit the market . I always say it is more important to protect your capital , then earning profit by betting your whole capital in a greed of earning some profit . This rule not only applies in share market but the whole life. 

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Nice thought so write part 2 great afford
Interesting. Do you find one of your strategies are more important than the others?