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Utilize stoploss orders to limit losses from "summary" of Secrets You Never Knew About Stock Market Investing and Trading by Swaminathan Annamalai
To protect your investment in the stock market, it is crucial to implement stoploss orders. These orders act as a safety net, preventing your losses from spiraling out of control. By setting a stoploss order, you establish a predetermined price at which your shares will be sold automatically. This strategy allows you to limit your losses and exit a losing position before it deteriorates further. When setting a stoploss order, it is essential to determine the appropriate price level based on your risk tolerance and investment goals. By analyzing the stock's volatility and historical price movements, you can identify a suitable stoploss price that aligns with your risk management strategy. This proactive approach helps you avoid emotional decision-making during mark...
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