How To Decide Stop Loss??????

Dear All,

The Stop Loss is also very important thing when you does the trade anywhere whether stock market, commodity market or forex..Sometimes due to not fixed stop loss some traders faces more losses then they actually have to suffer.

I have very easy way to decide stop loss by which you can limit your loss. We have already discussed some charecteristics about the elliot wave and in the same pattern we will learn to decide the stop loss..

Well, first, you have to identify a third wave developing. Let's say you've counted waves 1 and 2 on a chart, and you're willing to bet your money that wave 3 is next. Of course, you don't know for sure if it is or not, so to protect yourself, you recall one of the three rules of Elliott: "Wave 2 cannot retrace past the origin of wave 1."

You could then place your stop-loss just below the starting point of wave 1. If your ostensible wave 2 goes past the origin of wave 1, you'll know that it was not a 1-2 with a 3rd wave in the making, after all.

So to trade systematically its very essesntial to decide a stop loss and its the rule of any market that who dont plays systematically at the end gose towards the hell..and i dont think anyone of us likes to go there so decide the stop loss and play systematically and spoil the market and rock the world...Hari Om......