Before you start in this trade, you should have decided on your target price if the market favours you and your stop-loss price in case the market goes against your expectations. Pyramiding stocksIf the stock price continues to favour you, you can cash out in stages by reducing your position as the price rises. Cutting lossesWhen people buy stocks, they rarely think about losing, yet gaining and losing are two sides of the same coin. Preferably, the stop-loss should not go beyond 10 per cent loss. More than anything else, the failure to cut losses is what has led many to financial ruin in the stock market.

Source: Standard Digital March 30, 2022 03:26 UTC