It is a well known fact that nobody can predict the future trend of the market. Based on information, facts, fundamental analysis and technical analysis we can make a informed guess on what can be the future trend of the market. This kind of a guessing works better when the trading is for a long term period. It is verify difficult to predict if say you execute a trade at 9am and plan to exit the trade by earning a profit at 10am. Even seasoned players in the stock markets prefer trades where they can hold on for a longer period and wait for the prices to move in the expected direction.

Stop Loss Orders are very important for a trader to be successful and to preserve his capital. It is easy to buy a stock but when to exit is more difficult.