🛑 Stop Loss Mastery

Protect Capital, Control Risk, Trade Like a Professional

                                       

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 Why Stop Loss is Important?

Stop Loss (SL) is not a loss — it is protection.

• Prevents big losses
• Controls emotions
• Keeps you in the game

No Stop Loss = Account Damage

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📊 Types of Stop Loss

1️⃣ Structure-Based SL (Best)

• Below support (for buy)
• Above resistance (for sell)

2️⃣ Candle-Based SL

• Below entry candle (buy)
• Above entry candle (sell)

3️⃣ Percentage SL

• Example: 10% of option premium

Best Practice: Structure SL + Candle SL

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 Buy Trade SL Example

• Entry after bullish confirmation
• SL below support or candle low

Example:

• Entry = 100
• SL = 90

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 Sell Trade SL Example

• Entry after bearish confirmation
• SL above resistance or candle high

Example:

• Entry = 120
• SL = 132

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📊 Risk Management Rule

• Risk only 1%–2% per trade
• Never risk full capital
• Position size based on SL

Small SL = Long survival

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 SL Adjustment (Very Important)

• At 1:1 profit → Move SL to cost
• At 1:2 profit → Trail SL

Protect profit, don’t give back

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 Common SL Mistakes

• Not placing SL
• Moving SL emotionally
• Keeping very big SL
• Removing SL after entry

If SL hits → Accept and exit

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 Psychological Rule

A professional trader accepts loss quickly.

• Loss is part of trading
• Small loss = learning
• Big loss = mistake

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🔐 Final Checklist

• Is SL placed immediately?
• Is SL logical (not random)?
• Is risk under control?

If ANY answer is NO → DO NOT TRADE

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 Final Insight

Your first job is not to earn — it is to survive.

Protect capital.
Respect Stop Loss.
Trade consistently.

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 Shaktimatha Learning

Building disciplined traders through structured thinking.