What does stop loss mean? Does it mean to sell shares at that point or anything else? And what does entry point mean? Does it mean to buy there? If my assumption is correct, then why stop loss point stands before entry point?
Stop Loss is a predefined price level where we shall take the loss. When we buy a stock at some price level, we see two things: target price and stop loss level. If our analysis is correct, the stock might hit the target price level, but if our analysis is wrong, the stock might go down and will hit our predefined price level (stop loss level). And we shall take the losses. Hope you got me. Thanks.
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What does stop loss mean? Does it mean to sell shares at that point or anything else? And what does entry point mean? Does it mean to buy there? If my assumption is correct, then why stop loss point stands before entry point?
Stop Loss is a predefined price level where we shall take the loss. When we buy a stock at some price level, we see two things: target price and stop loss level. If our analysis is correct, the stock might hit the target price level, but if our analysis is wrong, the stock might go down and will hit our predefined price level (stop loss level). And we shall take the losses. Hope you got me. Thanks.
হেড & শোল্ডার প্যাটার্নে এন্ট্রি পয়েন্টের উপরে স্টপ লস কিভাবে থাকে?? বিষয়টা ক্লিয়ার করলে ভাল হয়