Best Intraday Trading System & Tool :
Best Intraday trading system & tool along with appropriate exit strategy,& risk management. We tries to give you an insight on implementing different stop loss roles.
#1 What is stop loss?
It is simply a price in negative direction of the trade that traders trade in to. It has no regrets exit even if it doesn’t favors in the trader’s direction. The stop loss point should not be far away from trading entry Level in order to save from the causes of damages to trading account when It hits.
#2 Fixed Stop loss
We at nifty trading academy help you in fixing stop loss. Once you decide the risk% of your Capital along With your position size, you can calculate the loss per trade that you will accept.
#3 Variable Stop loss
Indexation is the one method through which we can fix stop loss. Another method to look at losses is to take into account the current intrinsic price movements variations in the period of reference and used it as stop loss.
#4 The level of Stop Loss
The level of stop loss should be stick to the original one. There should be no locking potential profit as the trade movies in ones favor. The approach should be trailing one.
[Must Read : Best Intraday Trading Techniques]
#5 Stop losses can help in Optimizing profit.
One can avoid losing too much profit when price drops more than n% of highest profit.
#6 Relative stop losses VS Absolute Stop Losses
- If you start looking at the price patterns, then the options for stop losses changes. As a swing trader the trend is confirm by the formation of successive highs and uptrend and also successive lows in the downtrend. Successive highs in uptrend and lows in downtrend. The stop loss can be just below swing low or high. If you use Fibonacci levels while trading then fib line below low for long entry is a good choice for the stop loss level.
#7 Absolute Intraday Trading System & Tool
You can use the structured script to replace buy and sell logic with ATR based trailing stop method.
ATR is powerful simulation tool that traders who want to trade based on price patterns or on the technical concepts can trade before using real trades.
#8 Risk management and stop loss
For proper risk management and stop loss always try to maintain reward to risk ratio more than 1 unless you are sure that there is bigger move that can ultimately give this ratio.