DEAR SIR
PLEASE TELL ME STOP LOSS IN SHARE MARKET
11 Replies
valji
(Accounts manager-MBA)
(2150 Points)
Replied 15 July 2011
do not do this business
no buiness no loss
na rahe ga bass na bajee gi basuri
valji
(Accounts manager-MBA)
(2150 Points)
Replied 15 July 2011
understand market ,it depend upon vairous factor
it also depend dollar rate
buy share on delivery basis with larze scap protfolio
do not buy share on telephone message come
do not buy share company which you do not here name
do not invest whole amt in share market
do not do future option
Devadas K S
(One life one Dream)
(3525 Points)
Replied 15 July 2011
Stop- loss order :
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position.
Devadas K S
(One life one Dream)
(3525 Points)
Replied 15 July 2011
STOP - LOSS :
It is a price level or a mechanism that forces a trader to take/book losses in a losing position instead of letting them grow any bigger. Ideally a Stop-loss level should be decided as soon as a trade is executed. If a stock say ABC is bought at 25$, Stop-loss for it can be kept at a price level somewhat lower than 25$. It can be 24, 23, 20 or even 15$. Let us assume the Stop-loss is kept at 20$. This means if the price of ABC, after having bought at 25$, goes below 20$, one should close the position by selling it. 5$ is the loss the buyer is limiting to. This might be little confusing for novice traders because it involves closing a position willingly at a loss! Remember: In a long position, the Stop-loss level is usually lower than the entry price.
Likewise if a person Shorts (what is this term? It means sell first even if you don't own the stock with the hope to buy it back later at a lower price) ABC stocks at 25$, he should keep a Stop-loss at any price higher than 25$. Say if it was kept at 30$, this means if the price moves up contrary to the initial expectations of it going down, and touches 30$, one should call it a quit and square up the position. Thus, in a short sell, the Stop-loss price is higher than the price at which the stock was sold.
Devadas K S
(One life one Dream)
(3525 Points)
Replied 15 July 2011
| Originally posted by : Aditya(future ca) | ||
 |
nice explanation by dev |
 |
sorry bro, it was actually copied by me from net..........
M. N. JHA
(CA)
(8316 Points)
Replied 15 July 2011
Stop loss is basically a trigger point for reducing unlimited loss.........
whenever we make a postion we look a stop loss to reduce Risk.............
suppsoe u bau reliance 850 and think it will may go upto 900 but if u also think i will take only rs. 10 risk then ur stop loss should be 840........
it minimize risk..............
but fixing of stop loss is very difficult needzs lot of expirence and knowledge..........market news flow and other market enovirment things..............
GIRISH KHUBCHANDANI
(STUDENT)
(90 Points)
Replied 17 July 2011
STOP LOSS SHOWS YOUR RISK TAKING ABILITY.
IT BASICALLY DENOTES THE MAX AMT UP TO WHICH U BUY THE SHARE
OR
THE MIN AMT AFTER THAT U WILL SELL THE SHARES.
GIRISH KHUBCHANDANI
(STUDENT)
(90 Points)
Replied 17 July 2011
STOP LOSS SHOWS YOUR RISK TAKING ABILITY.
IT BASICALLY DENOTES THE MAX AMT UP TO WHICH U BUY THE SHARE
OR
THE MIN AMT AFTER THAT U WILL SELL THE SHARES.
Ramalingam K
(Founder & Director - Holistic Investment Planners (P) Limited)
(21077 Points)
Replied 07 May 2014
Booking Losses at the Right Time: A Less-known Wealth Management Strategy
Do you book profit or book loss?
You have bought the shares of ABC Ltd at a rate of Rs.100 per share. The current market price is Rs.150 per share. Also you have bought the shares of XYZ Ltd at a rate of Rs.200 and the current market price is Rs.125.
https://www.holisticinvestment.in/wealth-management-strategy
Regards
Ramalingam K, MBA, CFP,
Director and Chief Financial Planner,
Holistic Investment Planners
“Best Performing Financial Advisor Award” Winners from CNBC TV18
www.holisticinvestment.in
(Follow us on):-
https://www.facebook.com/holisticinvestmentplanners
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