Back Trade like a good batsman

New Delhi : For the health of your portfolio, apply measures like targets and stop-loss. A good batsman adapts to different conditions and quality of opposition. On a flat wicket against weak bowling, he plays shots freely. If the conditions are against him and the bowling is good, the forward defensive stroke and the leave outside off-stump become most crucial.

By analogy, a trader has to be more careful and defensive in a bear market. The trading equivalent of the forward defensive is the stop-loss. You can sometimes get away without stop losses in a bull market though it’s always a good idea. In a bear market, trading without a stop loss is one way to commit financial suicide.