The investment in Indian stock market has to be done very cautiously and carefully. To prevent loss you can a stop loss order for your protection. Another point to be kept in mind is that you if you are in doubt, you have to get out of market. When you have lost everything, then it is best to stop trading at this moment only.

There are certain exceptions to these rules. One of them is that you should never put a stop loss order when the stock is trading 80% below its all time high. Those who are entering in a good trade at that level also you can invest at that time only. Trading at this time will let you make a good exit at if there is something wrong. You need to have a chance to save your earnings at good point. You also have to keep in mind that if you are trading in the 2nd phase of a bull run then you don’t have to give out the stop loss order as the stock price is bound to move above the previous high. However, you have to keep in mind that you should not waver and not panic due to the swings in trading.
You should try to keep a clear mind and when faced with sure gains do not avoid taking risks. While if you are sure that there are sure losses do not be a risk taker. Try to be aware of circumstances, generally when high percentage of participants become overly optimistic or pessimistic of the future, it is a sign for the opposite scenario to occur.

You should try not to enter or exit trade at exact market bottom or top. If you try to exact market at top or bottom, could be you are will be successful, but many times it is not possible to have such good luck. So be cautious