Stoploss methods on intraday trading on shares?

Discussion in 'Introductions' started by aarkey1943@yahoo.co.in, Apr 19, 2009.

  1. aarkey1943@yahoo.co.in

    aarkey1943@yahoo.co.in New Member

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    Sir,
    I have so far not used the stoploss principles, while buying and sellings of shares, by which I have undergone huge losses, for the last two years. Atleast now when the market is returning to normal, Can anybody, teach me, how to trade intraday, by using stoploss method, while buying and selling, with examples.?
     
  2. aarkey1943@yahoo.co.in

    aarkey1943@yahoo.co.in New Member

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    It seems that nobody answered my doubt on using or fixing our own stoploss principles, during intra-day trading. Again I am asking my friends, to kindly explain me, how to enter the stoploss figures, and what is triggered price etc?
    R.Kumaraswamy, Chennai, Avadi,:confused: mail i/d: aarkey1943@yahoo.co.in
     
  3. balmal2511

    balmal2511 Member

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    Hi,

    Stoploss is not a principle of trading but a must while trading.

    Suppose if u want to buy some X script for Rs.100. then your buy order gets executed. You will buy the script bcos you expect it will go from 100....101..102...110 etc, then it will be fine with you. then your assumptions will be correct and you will be in profit.
    Suppose if the script did not go as per assumptions then, this will happen to the script 100..99..98...80. so you will in loss. That should happen.

    SO YOU HAVE PLACE A STOPLOSS. Let the stoploss be 98 ie 2% from the buy price. After the buy order was trigered, place the Sell order at 98. this Sell order is your Stoploss order.

    So when the script reaches 98 your sell order is triggered and end up at 2% loss, which will save you from almost 20% loss.

    Same can also done while Shorting the script.

    Regards,
    BALMAL
     

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