You must appreciate that as losses increase the capital required to
cover those losses increases at a much higher pace than your
anticipation. Have a look at below image to understand the correlation
between your losses and capital or percentage gain needed to break even to cover
your losses. Thus here comes the importance of stop-loss which you
must follow religiously.
As you see percentage gain needed to break even increases disproportionately as the loss increases. Thus it is better to trade less and make money using our daily
hot stock tip and be out of the market by 11 Am with profit.