Importance of Stop Loss

What's most important for good profits in the long term? some would say trading system, discipline, technical analysis, fundamentals analasys and so on............. but what i would say is a STOP LOSS. yes i know allmost 95% of you people don't put a stop loss in your positions no matter how much i advice other 5% do and now if you look at the profitablility of the both categories you will find that these 5% are the ones which make 95% of the money in the market............. reason they are disciplined, they follow the rules that have been learnt by expert over years of experience, they are patient, they have control over their emotions. If you want to come in those 5% who are minting 95% of total money you have to do what those 5% people are doing......................... and believe me if you keep doing the things you have been doing till now you will keep getting the results u have been getting till now .................... if i recommend a stock there is no gurantee that it will achieve a target 100%..................... the gurantee is not there for anyone because there is no system which can give you success all the times especially when it comes to trading. If you put stop losses in all your positions then i being right most of the time you will be earning most of the time and the ones in which i am wrong you will be exiting immediately protecting your capital. means what..................... you are minimizing ur losses and maximizing your gains and hence you will be profitable in the long run. Not putting stop losses means you are stuck in your ego and you are saying to the market I AM ALWAYS RIGHT....................... i can't be wrong and the market has no mercy and guess what even 25% of your picks are unsuccessful you end up giving all the gain you got in other 75% plus your capital as well. Had u put your stop losses in place no one could stop you to be profitable. Follow the rules people its your money after all you can't afford to losse it understand what the experts in your field are saying. You are not charged by your broker to put stop losses. right? then whats the issue ....................... you have two options either you can learn it now or the market will make you learn it after taking heavy fee for the learning course......................... a hardworker is the one who learns from his mistakes and a smartworker is one who learns from the experiences of other. so i believe each one of you would never ever hold any position without any stop loss even if you are a long term investor you can't afford to hold any position without stop loss you have to keep trailing the stop loss with rises so in no case you don't end up giving your gains back to the market. Remember my words next time if you don't put your stop losses after your buy order then that means YOU ARE DIGGING A GRAVE FOR YOURSELF................... and if you still think i am wrong you can keep doing what you are doing right now but remember by doing that you will  keep getting what you have been gettting till now.

#CHANGEFORSUCCESS

abhishek ninaniya
the stock king
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ravi khanal
AUTHOR
November 5, 2014 at 11:29 PM delete

thank you ... i never realised it .. as i had a thought always that if i am buying this stock at CMP it is possible that this will go down by a few more but it is certainly going to achiever bigger heights ... then why to have a SL on place ( in short you rightly called it as an ego). I i will take care of it in each of my future transactions now on.

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November 6, 2014 at 10:09 PM delete

look at the charts of naisagirk agro and anukaran commercial once before you think so..............

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Anonymous
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November 18, 2014 at 12:57 AM delete

Abhishek, How to set Stop Losses permanently. I use ICICI Direct. I am forced to set Stop loss on a daily basis.

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November 18, 2014 at 6:05 AM delete

dear as far as i know icici and few other brokers don't allow stop losses on vtd basis the only option u r left with is to change your broker............ i use sharekhan and they allow placing stop losses for next 45 days.........

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pappu rajput
AUTHOR
February 13, 2015 at 1:36 AM delete

last year due to this so called ego , i had lost almost 50 k , and too was a borrowed money from my friends , i was such a fool to do dat , i wish i could have followed you from my beginning ,
you are amazing abhishek sir , i have gone through your blog almost completely , i have even ordered books of mr. nicolas darvas and books from cnbc...
i hope you keep doing this good work...god bless you sir...

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February 13, 2015 at 7:27 PM delete

god bless you broo also keep following the technical analysis series that we have just started on our blog...................... we will b covering almost every topic of technical analysis in simple and to the point manner in next 2-3 months................ happy Investing

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