How can we use stoploss for a good profit?

<p>One of the simplest methods for placing a stop-loss order when buying is to put it below a "swing low." A swing low occurs when the price falls and then bounces. It shows the price found support at that level. You want to trade in the direction of the trend. As you buy, the swing lows should be moving up.</p>

<p id="isPasted">The goal of every investor is to avoid losing money in the market. Traders often look for ways to minimize their losses. This is where stop-loss comes into play when trading goes wrong If you believe the price may move against you, you will use a stop-loss order to limit your losses.</p><p>For example, suppose a stop-loss order point is set at Rs 80 per stock which is priced at Rs 100, your Stop-loss order will execute when the price reaches Rs 80 which will prevent you from your further loss.&nbsp;</p><p>Most traders use the percentage methods to set the value of the stop-loss order. Stop-loss orders are not for active traders. A Stop-loss order will not work for a large volume of stocks as it may lead to high losses in long run.&nbsp;</p><p><strong>ADVANTAGES:</strong></p><ul><li>Gives protection from excessive loss</li><li>Executed automatically at any time</li><li>Can be implemented easily</li></ul><p>Allows you to decide what amount you are willing to risk.</p><p><strong>&nbsp;DISADVANTAGES:</strong></p><ul><li>This could result in deals closing too soon, hence limiting profit potential</li><li>Traders need to decide which rate to set, which could be tricky</li></ul><p>&nbsp;</p><p>But experienced traders know that stop-loss does not necessarily solve all of a trader's problems. Using them should be handled with caution, as they can limit potential profits by effectively closing a deal too early.</p>

<p>Your stop-loss levels should be a strategic choice based on testing out and practicing multiple methods. Another type of stop-loss is a stop-loss limit order, which will close your trade only at the stop-loss price or better.</p>

<p id="isPasted">As a trader, you are basically telling your broker when to close your trades by placing Stop Loss and Take Profit orders.&nbsp;</p><p>Stop-loss orders tell your broker how much you are willing to risk with your trade.</p><p>To set the stop-loss order value, most traders use percentage methods. Active traders do not use stop-loss orders. Large volumes of stocks are not suitable for stop-loss orders, as they may lead to high losses in the long run.</p>

<p id="isPasted">Stop-loss orders shouldn't be placed at random levels. If the price turns against you, the ideal place for a stop-loss allows for some fluctuation but still allows you to exit your position.</p><p>You can place a stop-loss order when you buy by placing it below a "swing low." A swing low occurs when the price falls and then bounces. That shows the price found support at that level. The trend should be followed. If you buy, the swing lows should be moving upward.</p>