Comment on Nithin - Zero to Zerodha

Nithink commented on 29 Jul 2013, 10:38 AM

A beginner/amateur or someone trying out new strategies needs a price stop loss to ensure that you are not losing too much for experimenting. But once you have done all of that and spent a few years trading in and out, you will realize that stop losses are quite detrimental to your performance.
Though I am saying that I didn’t use stop losses, but what you need to understand is that 80% of my trades were using just 5% of the capital. This personally for me was a better money management strategy.
When you take higher leverages you are forced to put very tight stops and possibly lose out on the potential of the trade. When you are lighter on a trade, you don’t get emotional and more likely are going to think through the trade, hence no need of price stops.

My personal view!!! 🙂

Best of luck

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