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Traders generally hate to book the stop Loss and they always loves to book the Target.

What is the use of stop loss in Trading ?

STOP-LOSS-TO-INCREASE-LOSSESStop Loss always plays major role while Trading.I think whenever any thing is discovered in the universe and if  there is a dark part of that particular discovered thing, then solution is also simultaneously discovered. Therefor
for anything in the universe there is always a good part and dark part.So if there is a dark part then obviously there
is a solution for that dark part.

While Trading markets there are both good and the dark parts. Good part is that you can earn huge money and the dark part is that there is always a risk to lose all the money in your trading account. To prevent the major losses or to protect your trading account from heavy losses there is a system developed in trading called as Stop Loss.

Stop Loss always protect your trading account.

Traders attitude about Stop Lossstop-loss-strategy

I experienced that traders always hate the stop loss word. Whenever traders execute the trade and unfortunately if  the trade is going in apposite direction they don’t book the decided stop loss.

Traders hope that each trade they trade should go in their favored direction and they should always book the target. Many times fortunately the trade is favored in their direction.

If the trader has booked profit in few of the trades but one single trade is sufficient to spoil their trading account to Zero if they don’t place the stop loss order.

Believe it !  You cannot take big losses and expect to be a profitable trader. If you are not ready to take a small loss, then you will take the mother of all losses !

Stop Loss is the essential Part of your Trading Business

What I defined Trading is the Combination of more winning trades and less losing trades which results you in ultimate consistent profits in trading.

I experienced that no trader in the world might be there who has not make losses in trading.But I experienced that those who made losses in trading and those who are consistent in trading following the rules, they all are successful traders.

I feel that stop loss is the essential part of your trading business.You should accept and book the stop loss happily. Since stop loss is to protect your trading account from major losses . As you love your targets same you should love your losses too , if you want to be a consistent successful traders.

If you are using a good  trading strategy using money management rules then while trading you should always place a stop loss order and book you losses.If you trade twenty one  trades in a month and if you got fourteen targets and seven stop loss then overall you will be in profit. So  accept the seven stop loss trades happily to enjoy the profit of that particular strategy.

To start any business,  initially some capital is required , then only you can make profits.Initially some expenses are required. Same For a Trading Business losing trades are the cost of business.You must have losing trades so that you can have winning trades.

How Profitable is losing money in trading

Very profitable. That’s right. For traders, losing money is very profitable. In fact, if you cannot lose money, you cannot earn any.

If that sounds like a paradox to you, you need to stop trading until you resolve that.

There is one key exception to the principle of “lose some, earn more”. You must not lose so much that you risk ruining your account. You should follow the money management and risk management principle while trading.

Remember in Trading if you are not ready to lose some amount of the Money then you cannot Earn big amount of Money.

Happy Trading.

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