I read the book “How I Made 2000000 In The Stock Market ” By Nicolas Darvas recently. He was actively involved in the markets in the 1950s. There was a lesson in that book that is still very valuable today .

One thing he did religiously was to put a stop loss for every order he placed . A stop loss is an order type that gets triggered if a stock price falls to the stop loss order price or by the delta specified in the stop loss order.

It is a great way to lock in your gain and to manage your risk so you don’t lose your trading capital .

One thing I personally struggle with is letting my upward moving stocks run . With a stop loss you move that along as your stock price increases . You now even have order types where you can set up your stop loss price to move as the stock price moves .

If you set up a stop loss when you purchase a stock it will trigger a sale if the stock turns downwards . This way you are not stuck holding a stock forever after it has taken a beating.

Even though the book is old I found the concepts to be very relevant and very much enjoyed reading the book.