What is stop loss

do not do this business

no buiness no loss

na rahe ga bass na bajee gi basuri

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

so where is the loss?

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. 

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.

nice explanation by dev       

Originally posted by : Aditya(future ca)
	nice explanation by dev

sorry bro, it was actually copied by me from net..........

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..............

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.

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.

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