A New Question about Trailing Stop loss

L

lord_horn_asstr

New Member
#1
#1
Dear All,

Kindly excuse my naivete as I am still learning. Please let me outline what I plan on doing with my stop loss. If you can explain how to do this, it would be great.

1. MORNING: Wake up, have tea and check the market.
2. MORNING: Place an order (a long position): Say, 100 share RIL @ 10 each for a total value of 100x10 = 1000/-
2a. MORNING: When placing the above, I'd like to place a stop loss. This will be when the price hits 8/-.
3. MORNING: I press the BUY button and it goes into my system (can be any system, online like HDFC Securities, ODIN, etc.)
4. EVENING: An hour before closing, I check the markets again.
5. EVENING: Now the RIL price has moved up. From 10/- it has gone to 16/-
6. EVENING: I now want to move my stop loss (manually also no issues, chalega) from 8/- to 12/-

Questions:
1. Is step 6 possible?
2. If step 6 is possible, how do I do it? (I mean, do I just edit the stop loss figure, keeping everything else same, OR do I sell it and buy it again, this time with the NEW stoploss, or whether I am missing any steps in between)
3. Normally, calculations happen on T+2 days (hope I'm correct). Does my Stop loss affect T ?

Thanks in advance.

LH
 
M

mutualguru

Active Member
#2
#2
lord_horn_asstr said:
Dear All,

Kindly excuse my naivete as I am still learning. Please let me outline what I plan on doing with my stop loss. If you can explain how to do this, it would be great.

1. MORNING: Wake up, have tea and check the market.
2. MORNING: Place an order (a long position): Say, 100 share RIL @ 10 each for a total value of 100x10 = 1000/-
2a. MORNING: When placing the above, I'd like to place a stop loss. This will be when the price hits 8/-.
3. MORNING: I press the BUY button and it goes into my system (can be any system, online like HDFC Securities, ODIN, etc.)
4. EVENING: An hour before closing, I check the markets again.
5. EVENING: Now the RIL price has moved up. From 10/- it has gone to 16/-
6. EVENING: I now want to move my stop loss (manually also no issues, chalega) from 8/- to 12/-

Questions:
1. Is step 6 possible?
2. If step 6 is possible, how do I do it? (I mean, do I just edit the stop loss figure, keeping everything else same, OR do I sell it and buy it again, this time with the NEW stoploss, or whether I am missing any steps in between)
3. Normally, calculations happen on T+2 days (hope I'm correct). Does my Stop loss affect T ?

Thanks in advance.

LH
Click to expand...
I assume you want Trailing Stop Loss check zerodha they provide intraday trailing stop loss
 
M

mastermind007

Well-Known Member
#4
#4
lord_horn_asstr said:
Dear All,

Kindly excuse my naivete as I am still learning. Please let me outline what I plan on doing with my stop loss. If you can explain how to do this, it would be great.

1. MORNING: Wake up, have tea and check the market.
2. MORNING: Place an order (a long position): Say, 100 share RIL @ 10 each for a total value of 100x10 = 1000/-
2a. MORNING: When placing the above, I'd like to place a stop loss. This will be when the price hits 8/-.
3. MORNING: I press the BUY button and it goes into my system (can be any system, online like HDFC Securities, ODIN, etc.)
4. EVENING: An hour before closing, I check the markets again.
5. EVENING: Now the RIL price has moved up. From 10/- it has gone to 16/-
6. EVENING: I now want to move my stop loss (manually also no issues, chalega) from 8/- to 12/-

Questions:
1. Is step 6 possible?
2. If step 6 is possible, how do I do it? (I mean, do I just edit the stop loss figure, keeping everything else same, OR do I sell it and buy it again, this time with the NEW stoploss, or whether I am missing any steps in between)
3. Normally, calculations happen on T+2 days (hope I'm correct). Does my Stop loss affect T ?

Thanks in advance.

LH
Click to expand...
In the very strict sense, step 6 is not possible (or rather not allowed!). Exchange wants you to be glued to your computer while your money
is inside riding on the giant tumbling machine made by them.

However, there are quite a few work arounds that can be done

Few brokers provide facilities where this sort of thing can be done.
 
B

blackberry

Well-Known Member
#5
#5
lord_horn_asstr said:
Dear All,

Kindly excuse my naivete as I am still learning. Please let me outline what I plan on doing with my stop loss. If you can explain how to do this, it would be great.

1. MORNING: Wake up, have tea and check the market.
2. MORNING: Place an order (a long position): Say, 100 share RIL @ 10 each for a total value of 100x10 = 1000/-
2a. MORNING: When placing the above, I'd like to place a stop loss. This will be when the price hits 8/-.
3. MORNING: I press the BUY button and it goes into my system (can be any system, online like HDFC Securities, ODIN, etc.)
4. EVENING: An hour before closing, I check the markets again.
5. EVENING: Now the RIL price has moved up. From 10/- it has gone to 16/-
6. EVENING: I now want to move my stop loss (manually also no issues, chalega) from 8/- to 12/-

Questions:
1. Is step 6 possible?
2. If step 6 is possible, how do I do it? (I mean, do I just edit the stop loss figure, keeping everything else same, OR do I sell it and buy it again, this time with the NEW stoploss, or whether I am missing any steps in between)
3. Normally, calculations happen on T+2 days (hope I'm correct). Does my Stop loss affect T ?

Thanks in advance.

LH
Click to expand...
No 6th step not possible because you got the delivery/entitled(for) of shares and you have to sell/buy/hold it manually next day.
 
M

mastermind007

Well-Known Member
#6
#6
blackberry said:
No 6th step not possible because you got the delivery/entitled(for) of shares and you have to sell/buy/hold it manually next day.
Click to expand...
Stop loss order will always complement the initial order.
How does delivery even have any impact with complementary order?

If initial order is Buy, stop loss will always be Sell.

If initial order is Short (Sell first), stop loss will be Cover (Buy later).

Whether you have your SL executed in next minute Intraday or have it executed in next century (with stock present in your DP account),
pre-placed stop loss order can remain in the exchange as long as you want.

If you Sell and do not fulfill your delivery obligations after that, broker/exchange will fine you but they will not stop you from selling.
 
T

tradingnoob

Member
#7
#7
mastermind007 said:
In the very strict sense, step 6 is not possible (or rather not allowed!). Exchange wants you to be glued to your computer while your money
is inside riding on the giant tumbling machine made by them.

However, there are quite a few work arounds that can be done

Few brokers provide facilities where this sort of thing can be done.
Click to expand...
What workarounds if I may ask? sorry if this seems very basic, but I am new to trading. Also, is this stop loss different from the price at which we want to sell if the price goes up? In this case, could I have set stop loss at Rs.9 (if it goes down) and sell price at Rs.12 (if it goes up), so that whichever gets triggered first is the price at which the stock gets sold?

Also, is it possible for me to get practice on brokers' trading terminals (Zerodha or ShareKhan) to get a feel for things without having to sign up with them and do the paperwork?
 
Last edited:
M

mastermind007

Well-Known Member
#8
#8
tradingnoob said:
What workarounds if I may ask? sorry if this seems very basic, but I am new to trading. Also, is this stop loss different from the price at which we want to sell if the price goes up? In this case, could I have set stop loss at Rs.9 (if it goes down) and sell price at Rs.12 (if it goes up), so that whichever gets triggered first is the price at which the stock gets sold?

Also, is it possible for me to get practice on brokers' trading terminals (Zerodha or ShareKhan) to get a feel for things without having to sign up with them and do the paperwork?
Click to expand...
Work around # 1 is ideally suited for those who want to update stop loss prices once a day. You can create a Bulk Order file. It is basically a CSV file that you need to create once at start and then keep updating it daily and uploading it into your terminal on daily basis. Both NEST and NOW support this.

Sharekhan additionally provides and option to the user to provide a GTD date for each order which is little bit more convenient way to do the same.

For Intraday trades, Sharekhan does provide automatic trailing feature too but that can be used only for the first day. Once your scrip is in your DP, you can no longer have prices trail intraday also

Visit some Sharekhan branch and see if they will let you play with software.
 
T

tradingnoob

Member
#9
#9
I am not looking to do intraday trading - my window would be days/weeks. What stoploss options do I have? Does any broker allow trailing stoploss for other than intraday?
 
M

mastermind007

Well-Known Member
#10
#10
tradingnoob said:
I am not looking to do intraday trading - my window would be days/weeks. What stoploss options do I have? Does any broker allow trailing stoploss for other than intraday?
Click to expand...
You can keep stop loss for as long as you want including bulk order file. To trail it you can modify the order as often as you want...
 
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