Best Intraday trading system & tool along with appropriate exit strategy,& risk management. We try to give you an insight on implementing different stop loss roles.

Yes, Stop-loss The Best Trading System is all about on your stop-loss. So, Here you can find the best eight methods of stop-loss.

1. What is The Stop Loss?

It is merely a price in the negative direction of the trade that traders trade-in too. It has no regrets exist even if it doesn’t favour in the trader’s direction. The stop loss point should not be far away from trading entry Level to save from the causes of damages to the trading account when It hits.

2. Fixed Stop Loss

We at trading fuel help you in fixing stop loss. Once you decide the risk% of your Capital along With your position size, you can calculate the damage per trade that you will accept.

3. Variable Stop Loss

Indexation is the one method through which we can fix stop loss. Another way to look at failures is to take into account the current original price movements variations in the period of reference and used it as stop loss.

4. The Level of Stop Loss

The level of stop loss should be stick to the original one. There should be no potential locking profit as the trade movies in one’s favour. The approach should be trailing one.

5. Stop Losses can help in Optimizing Profit.

One can avoid losing too much profit when the price drops more than n% of the highest profit.

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6. Relative stop losses VS Absolute Stop Losses

If you start looking at the price patterns, then the options for stop losses changes. The formation of new highs confirms the uptrend, and the consecutive lows approve the downtrend. Successive highs in uptrend and lows in a downtrend. The stop loss can be just below swing low or high. If you use Fibonacci levels while trading then fib line below low for long entry is an excellent choice for the stop loss level.

7. Average True Range Stop-Loss

You can use the structured script to replace buy and sell logic with ATR based trailing stop method.

ATR is a powerful simulation tool that traders who want to trade based on price patterns or the technical concepts can trade before using real trades.

8. Risk management and Stop-Loss

For proper risk management and stop-loss always try to maintain reward to risk ratio more than one unless you are sure that there is a more significant move that can ultimately give this ratio.

About

Trading fuel is free education blog site for the stock market. From beginners to experts, there are different blogs available on our website. We regularly upload different blogs that help our reader to enhance their knowledge about the stock market. 

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.

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