Placing the stop loss is very crucial skill of a trader, losses in stock market is just inevitable. But trader can minimize his/her losses by placing a properly planned stop loss for the open trade.
Stop loss can be placed with the help of following methods:
1. Equity Stop Loss
2. Time Stop Loss
3. Chart Stop Loss
Which Method to use:
From the above 3 type’s most popular way of placing stop loss is chart stop loss, most of nifty future traders are looking for support and resistance to keep their trading stops. Candlestick charts are used because on charts we get complete idea of support and resistance, trends, retracements, momentum, based on them trading idea can be executed. On nifty future charts traders mainly focus on support resistance for placing stop below or above these important zones. However it is not mandatory to use candle stick charts, traders can however use bar charts or line charts for placing stop loss on nifty future trades.