Stop loss aur target price set
Stop Loss aur Target Price Kaise Set Kare
Setting stop loss and target prices during share market investments constitutes an extremely important procedure. The two investment tools protect investors from additional losses while helping establish profit targets. This writing will explain what stop loss and target price signify and show proper procedures for their implementation.
Stop Loss Kya Hai?
Stop loss functions as a tool which protects investors from definite loss. As soon as a share reaches the predefined price set for stop loss activation it triggers the tool to sell the stock thereby preventing additional losses. This strategy assists traders in managing risk through emotional trading.
Stop Loss Kaise Set Kare?
1. The Placement of Stop Loss Orders Generally Occurs Below the Support Level. A share can pause its downward trend when it reaches the support level price.
2. Percentage-Based Approach: Kuch traders apni risk-taking capacity ke anusar stop loss set karte hain, jaise ki 5% ya 10% neeche.
3. The ATR technique evaluates share volatility to establish stop loss parameters through its methodology.
4. You can determine stop loss based on your preferred trading risk of 1000 rupees.
Target Price Kya Hai?
When a trader or investor decides to sell their shares they set the target price at this specific level to achieve profits. The pre-defined exit strategy functions as a tool which helps investors protect themselves from greed and fear.
Target Price Kaise Set Kare?
1. The Resistance level functions as a target price point since prices tend to reduce there. This level can qualify as a target price.
2. Risk-Reward Ratio: Agar aapka stop loss 5% hai to aapka target price kam se kam 10% hona chahiye, yani risk-reward ratio 1:2 hona chahiye.
3. Strategic target pricing can be developed through the utilization of technical indicators like moving averages together with Fibonacci retracements and trend lines.
4. If market analysis reveals strong potential future growth within a company then investors should set extended target prices.
Stop Loss aur Target Price Set Karne Ke Labh
* Protecting losses becomes easier when stop loss orders are established.
* You may secure your profits through setting a target price.
* These two strategies help you trade with discipline by avoiding emotional decisions.
Conclusion
A successful trading strategy includes establishing stop loss and target price which helps control risks and maximize profits. You should establish stop loss and target prices after examining technical analysis, risk appetite and market trends. The usage of stop loss strategy is essential for both smart and disciplined trading activities.
