STOP LOSS, and How Much to Buy to STOP LOSS

Many of the short term Traders are still going behind Rumours and Tips. They do not want to think of the negative side of a trade.Traders love to talk of take overs at Present. They think that taking a company over is why the Prices are shooting up. Many want various types of information to float around, for them to trade. Despite the fact that this approach on relying on other people's stories are not right, Traders want to do their trading based on rumours, tips and information.

Trading be it with Charts, Rumours, Tips or information needs to be done with knowing that a trade can go against you. The moment we talk of Stop Loss many think it's to do with Technical Analysis. Which is far from the truth. Stop Loss is Stopping Your Loss. Hence it is not only for Chartists, it applies to every one who are Trading.

The most difficult part that applies to Stop Loss is the number of shares you need to buy in order to sell out easily. You should not buy a sizable number of shares expecting to stop loss. You must be smart in knowing the volume in order to exit without getting stuck.

It is also wise to recognize a Price Range to Stop Loss. that will help you to prepare yourself to exit without a struggle.

The idea of the stop loss is to take your emotions out of your trading. This is very important. The biggest enemy of your trading success will be your emotions. Have a predefined Stop Loss Range before you think of your entry. Give yourself some time to design your trade, for which you need to have patience. Else you are not suitable for trading.

Finally let me reiterate that the Stop Loss is not only for Technical Analysts. It must be followed by All Traders.