Thread by @chief_vk

#StopLoss: 1/n

Today In this Thread, I will write my Opinion about Stop Loss .
1. What it is ?
2. Why it gets taken out most of d time
3. How a PA trader look at SL and arrive at an entry Price.

Lots of bla bla bla...

RT is your Option and Not my Mandate.

1. What is StopLoss: Stop Loss is like Condom, which tells you that when you have Sex with an unknown or Multiple partners, then you are protected from 2 issues which can crop us as a surprise: 1. Pregnancy 2. STD - Sexually Transmitted Disease.
From Trading Perspective: Cont....

From Trading perspective: People use Stop Loss to Protect their Capital Erosion. Eg: When you have 2 Kids from 2 different partners, property has to be split equally😂😂. So you want to protect that.
2. When you have multiple positions at any given point in time - disease.

So Why does it get Taken Out all the Time ?
Please remember, all the systems which a trader uses Candle Stick, Trend Lines, EMA, Market Profile bla bla bla...all are very well known by OPERATORS. They do know that the whole retail universe can not afford to loose more than 1-2 %.

Even the training programs which you attend or online webinars by paying a fee - the trainer tells you to keep 1: 2 or 1 : 3 Risk : Reward Ratio for a Trade.
So when basis the candle move, you decide take an entry, Operator knows whats your SL....He will take it there a lower.

So depending on the Retail Order Identification - by using the Order Analysis placed in a particular stock and at particular price, Operator knows if its Retail or Another Operator. So he allows you to enter by showing some move in your direction and then Abra Ka Dabra....🧐🧐🧐

Your Stop Loss along with the entire retail traders gets taken out...as all would want to protect their 1% or 2% of the Entry Price....

You might have noticed that once the SL is taken out, The Price of the Stock Moves in the Direction you anticipated....😂😂😂...Sooner or Later

How a PA trader look at SL and arrive at an entry Price : What i practice is as below:
When i look at a Chart, i should first get an entry price the moment i see the Chart - Hunch based Trading. If i get that Hunch that it will move, then my mind doesnot give a SL - So the Enter.

But, If i look at a chart and it gives me an Entry Price and My Mind also tells me a SL - Then i know that the SL is going to be taken out - Reason: A Good TA's eyes and minds sync up very well and what ever they see is what the chart does. So if My Mind throws a SL - Then Cont..

So if my Mind throws a SL along with an Entry Price - I decide to enter at the SL Price and Not at the Entry Price.

This way i am now down by 1% from where the whole retail had identified the Entry Price. I might miss a Trade, but I am Fine in Missing, than giving my StopLoss.

I am a strong believer of a process, where i Dont believe in STOP Loss Giving or giving as Low as Possible.

So if my Mind tells me a SL along with Entry, then my Hunch tells me that some thing is wrong with the chart, hence Eyes and Mind are throwing a SL along with Entry.

So i revisit the chart and re-decide the Entry Price.
Remember: Operators / Smart Money knows what Retail Will do when they see a Candle / Indicator / SuperTrend / EMA Etc.,
Helicopter Ko Pata Hai Ke Aapne Ghar Ka Fan Lagaya Hai.

End of Chapter.
Thank You.