WHY to put a STOP LOSS

Many a traders feel themselves quite uncomfortable while putting stop losses, due to their several infavourable experiences in their past trades or due to their own reasons ( why to book loss, SL's are seen across all terminals and meant to hit, we would keep deliveries if trade goes against us, cumm on i know its gonna bounce back into my favour ETC ETC. )
But, stop loss is the most favourable tool of a trader. Believe me its meant for u.
Its there to save ur capital for next favourable trade, if ur current trade goes against u.
There are two ways to trade in share markets.
To trade long
or
To trade short ( in FNO stock)
just putting few examples before u, what would have happened in SL would have not been placed in following trades.
1. Go through RDB industries yest. it fell more than 50% on a single day, i.e. if u would not have put a SL while taking long trade, u would have lost half of ur capital.
2.Go through RNRL on 22jan. 2008, it fell more than 50 % from its intraday high.
3.RELCAPITAL on 22nd jan. 2008, made a high of 1912 & a low of 1311, with a close of 1824, down 4 % odd. just think of a buyer @ 1912 & a short seller @ 1311 without a SL.
4.Check out WWIL on 4 rth feb. 2009, with a low of 9.70, made a high of 19.58. Just think of a short seller @ 10rs. or a buyer @ 19 rs.
5. Hexaware on 12 th feb. 2009, with a low of 20rs. and a high of 42rs.
Similarly u would find many such examples of eroison of 50% or more on a given single day of a trader's capital.
And then these examples also show that even u were on a right direction in above trades, u would have exited early to loose all the extravagant profits which would have been pocketed by you, if u had a disciplined approach in ur trades.
That is called trailing stop loss, if u would have trailed ur profit in above trades if they were in right directions you would have doubled your capital on a single day.
One more thing, i would wanna add is that, all of above trades seems to be result of deleveraging of a leveraged trader's position. So, leveraging at the same time , has got a sharp advantage, it has got huge disadvantage also. So, at least avoid leveraging unless u r very very sure about ur direction and positions in a trade. But, even if u r fond of a leverage and very sure about ur positions, u should always keep a valid SL for your trades.
All i mean to say is that SL's and Trailing Sl's are meant to preserve a trader's capital and hence his confidence and existence in share market. So, even if u r not comfortable to put a stop loss or a trailing sl, u should keep monitoring ur trades on ur own screen so as to get rid of ur trades as early as it signals an exit. But if u can not remain on screen u should and always keep a valid stop loss on all your trades, be it a intraday, positional or a investment trade always.
Bcoz in this huge jungle of share market u really dont know which scrip turns out to be a WWIL or a RNRL or a REL CAPITAL or a HEXAWARE or a RDB INDUSTRIES on a given day .
So, better safe than sorry my friends after all its ur money who is being followed by smart people out there.
HAPPY SAILING.
JAI SAIRAM