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Why use of Stop Loss is Mandatory in Stock Trading?

April 26, 2017loss mandatory stock trading

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Why use of Stop Loss is Mandatory in Stock Trading?

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A. Apart from Technical Analysis, Stock Market is influenced by many complex factors like Political/ Financial/ Fundamental/ Inflation/ Geo-Political/ Natural Calamities/ Government Policies and other Acts of God. Therefore it may be unwise to take any price recommendations for granted which is merely based on Technical Analysis. Therefore never trade without Stop Loss Order however you may be sure of your success. In one stroke it may wipe off all your capital (may be more on Margin Trading) if anything goes wrong. Your Stop Loss order should be initiated along with your Buy/Sell order without fail.