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How to put a stop loss on a long term investment

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  #1  
Old 19th June 2009, 04:27 PM
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Default How to put a stop loss on a long term investment

Hi,

I am using Sharekhan.com for trading. I know how to place a stop loss for day trading. But, if I have invested a stock for a long term period, is there a way to place a stop loss.

Please advise. Thanks in advance.



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  #2  
Old 20th June 2009, 01:57 PM
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Default Re: How to put a stop loss on a long term investment

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Originally Posted by alian1980 View Post

I am using Sharekhan.com for trading. I know how to place a stop loss for day trading. But, if I have invested a stock for a long term period, is there a way to place a stop loss.
follow the med 2 long term trend technicals for the stock....if u have a portfolio , track the mkt itself...

currently med term invstrs need not worry till v trade abv 11145


http://www.traderji.com/position-tra...tml#post324058
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Old 20th July 2009, 06:53 PM
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Default Re: How to put a stop loss on a long term investment

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Originally Posted by sudoku1 View Post
follow the med 2 long term trend technicals for the stock....if u have a portfolio , track the mkt itself...

currently med term invstrs need not worry till v trade abv 11145


http://www.traderji.com/position-tra...tml#post324058
I am sorry but I still do not get it. Suppose I buy Stock A a price of 100 per share for a long term perspective of say 6 months, but want to ensure that I should sell it when it comes to 80. How do I go about doing that?

Do I need to keep checking the share price everyday or is it something that I can set from within my account. Please advise. Many thanks
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Old 27th September 2009, 12:53 PM
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Default Re: How to put a stop loss on a long term investment

alian1980 -- did you get the answer to this question? Even I have the same query as to placing a stop loss order that isn't restricted to day trading in sharekhan. Will appreciate if somebody can post the answer
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  #5  
Old 27th September 2009, 02:10 PM
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Default Re: How to put a stop loss on a long term investment

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Originally Posted by rmohan80 View Post
alian1980 -- did you get the answer to this question? Even I have the same query as to placing a stop loss order that isn't restricted to day trading in sharekhan. Will appreciate if somebody can post the answer
'GTC' (Good Till Cancellation beyond the trading day) orders are not allowed by SEBI, only 'GTD' (Good Till Day) orders are allowed.

This means that any orders placed are automatically canceled by end of the trading day if not executed. Next day again fresh orders are to be placed. (Stop Loss, or any other orders. As this is the restriction imposed by SEBI, GTC orders are NOT allowed through shareKhan or any other broker dealing with Indian stocks through any stock Exchange.

Now the solution lies in manually placing Stop Loss orders everyday (Repeat or modified, after trading hours if previous day's orders are not executed. If one has a good number of stocks, this is a very tedious manual process, but there is no other alternative.

I wish that, after market hours, there should be provision to reactivate such Stop Loss orders canceled by the system on end of day.

I also wish, we have a means by which we can place stop loss orders in bulk for stocks held by us through Excel sheet or by other means by a single click.

Hope I made myself clear on this.

I may not be 100% correct, and any knowledgeable members may supplement/ correct me.

Regards.

murthymsr
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Old 27th September 2009, 02:15 PM
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Default Re: How to put a stop loss on a long term investment

Quote:
Originally Posted by alian1980 View Post
Hi,

I am using Sharekhan.com for trading. I know how to place a stop loss for day trading. But, if I have invested a stock for a long term period, is there a way to place a stop loss.

Please advise. Thanks in advance.
Lot's of good inputs.
One more, you can buy a put to hedge. For eg if you have a stock A @Rs 100 and would like to get out if it sinks below 75 , you could buy a 75 strike put and forget about it.
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  #7  
Old 27th September 2009, 03:08 PM
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Default Re: How to put a stop loss on a long term investment

Quote:
Originally Posted by murthymsr View Post
'GTC' (Good Till Cancellation beyond the trading day) orders are not allowed by SEBI, only 'GTD' (Good Till Day) orders are allowed.

This means that any orders placed are automatically canceled by end of the trading day if not executed. Next day again fresh orders are to be placed. (Stop Loss, or any other orders. As this is the restriction imposed by SEBI, GTC orders are NOT allowed through shareKhan or any other broker dealing with Indian stocks through any stock Exchange.

Now the solution lies in manually placing Stop Loss orders everyday (Repeat or modified, after trading hours if previous day's orders are not executed. If one has a good number of stocks, this is a very tedious manual process, but there is no other alternative.

I wish that, after market hours, there should be provision to reactivate such Stop Loss orders canceled by the system on end of day.

I also wish, we have a means by which we can place stop loss orders in bulk for stocks held by us through Excel sheet or by other means by a single click.

Hope I made myself clear on this.

I may not be 100% correct, and any knowledgeable members may supplement/ correct me.

Regards.

murthymsr
Yes Sir, you are correct. GTC orders are not allowed now. Buzz is that, they might be restored soon, which would be a helpful feature.
But it might be restricted to futures orders alone !
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Old 27th September 2009, 06:46 PM
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Default Re: How to put a stop loss on a long term investment

Quote:
Originally Posted by Capricorn View Post
Lot's of good inputs.
One more, you can buy a put to hedge. For eg if you have a stock A @Rs 100 and would like to get out if it sinks below 75 , you could buy a 75 strike put and forget about it.
Can you explain a bit more on this sir? Do I need to put more money to buy this strike put?
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Old 27th September 2009, 07:06 PM
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Default Re: How to put a stop loss on a long term investment

Quote:
Originally Posted by rmohan80 View Post
Can you explain a bit more on this sir? Do I need to put more money to buy this strike put?
If you want to put a stoploss on long term investment,
put a MENTAL STOPLOSS ,which is stoploss to be put
on daily basis.
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Old 27th September 2009, 07:12 PM
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Default Re: How to put a stop loss on a long term investment

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Originally Posted by rmohan80 View Post
Can you explain a bit more on this sir? Do I need to put more money to buy this strike put?
It is better to avoid using such strategies. It involves more money/professional approach.


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