Dear Respected Experts and Mudraa Member,
I want to know about the stop loss order .How exactly we can save our orders by using Stop losses. I have heard that stop loss order saves our trade but I have a bad experience trading with Stop loss. So if someone can specifically let me know how exactly we should work with Stop loss orders.
See I want to trade like this in which I use to Enter my Buy order as well as Sell order in the trading software at the same time.
For e.g... I place a sell order XYZ stock like this
Sell Trigger price: 200 Sell At:199. Logically its simple to understand that I wish to sell my XYZ stock at 199 if or as soon as the stock price triggers 200.
And at the same time I Put my Buy Order as : Buy At: 189..Means straight away I am placing 10 points below as my Buy order..
Now exactly how it works sometime the Trigger price gets triggered at 200 but our sell price doesn't gets executed ( don't know why exactly). And at the same time market goes further down and our Buy price gets executed and then there it goes on crashing crashing falls further down never touches our placed sell price order and we instead of saving our trade by the way of Stop Loss instead suffers a big time losses.
Can Mudraa Gurus please throw some lights on this kind of a trade as it is a simple straight forward trade which a small time traders like me want to do but it turns out to be a nighmare after what exactly happens.
Please I need to understand a logic behind the concept of trading with stop loss in a scenario which I have explained above how can we save our trade or hard earn money with Stop loss orders.
It is a must for a trader like me to place both side orders at the same time as we do not get time to constantly monitor the market whole day.......Kindly please help me with some perfect trading concept ....Thanks in advance to all those who will reply and also to all those who will view this thread.