dear hoticecube. ( case one) cppper you gone short at 300/- leval assuming it is bearish,nextday it is at 304/-you dont sq up assuming move will come back.again next day it is at307/- you dont sq up assuming it will come back. next day it is at 310/- you are caught,you loose your paitionce,buy at 310/- loss of ten thousand.horrible situation---(case two) you baught copper at 300/ next day it is at 295/ you wait for another day it is again 300/-your loss cvered,after four days it is at 310/ now you are in profit of Rs 10000/- you decide i will sacrifice 5000/- for stop loss out of 10000/ earned,now from every high made,your stop loss is 5000/ below,finally copper made a high of 346/ after one month, then correction starts.you sq up your position at 341/-5000/- below its high,here your stop loss will automatically triger.,no second though to this stop loss,you earn 41000/ in stead of loosing 10000/- in short game. THATS WHAT I EXACTLY MEAN ,BEST OF LUCK