How to Control Loss in Stock Market is million dollar question for any investor or trader. By using a simple method, investors can easily Control Loss in Stock Market. The basic principle is to divide your investments into multiple parts based on your investment philosophy or investment objective. Some of the most common ways to divide are 1. Long term, Medium Term, Swing Trading and Intraday. 2. Investments in Stocks, Equity Mutual Fund, Balanced Mutual Fund and Debt Funds or instruments. 3. Large cap stocks, mid cap stocks or small cap stocks. The basic objective to divide the investments into multiple parts is to hedge the risk thus it answers the question i.e. How to Control Loss in Stock Market. Stop Loss for each of these multiple parts or segments can keep separately. In my opinion, it should be equivalent to one year fixed deposit interest rate. If the stop loss hit in one segment then as an investor i will exit that segment and first recover my loss. Thus it will help to Control Loss in Stock Market. This video is part 2 of the 3 part series. In the first part we discussed, how to recover the loss and in 3rd part, we will discuss how to become a profitable investor.
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