stop Loss

kedarvb · #1 26th February 2007, 07:53 PM

I understand he imp of sl order, but sometimes it happens that in volatile mkt,
stock can reach sl level our order will be executed & then it will take u turn
to our target price
so we unnecessary accept losses & if we donot put sl , then our capital comes in danger

what to do

i request all sr traders to educate me on that becoz same thing happened with me i put uo a sl on 1 bar below previous close

innocent_trader · #2 27th February 2007, 12:59 PM

Quote:

Originally Posted by kedarvb

I understand he imp of sl order, but sometimes it happens that in volatile mkt,
stock can reach sl level our order will be executed & then it will take u turn
to our target price
so we unnecessary accept losses & if we donot put sl , then our capital comes in danger

what to do

i request all sr traders to educate me on that becoz same thing happened with me i put uo a sl on 1 bar below previous close

although i never used stop loss, but i think it can be very dangerous, i've seen how bad it feels when u sell ur stock at a lower level to avoid big loss, and then within minutes it bounces back to your desired level

it really hurts man, so i never use stop loss, maybe cause im a newbie, or maybe cause i don't wanna lose my money with sl fear

vince · #3 27th February 2007, 01:44 PM

Quote:

Originally Posted by kedarvb

I understand he imp of sl order, but sometimes it happens that in volatile mkt,
stock can reach sl level our order will be executed & then it will take u turn
to our target price
so we unnecessary accept losses & if we donot put sl , then our capital comes in danger

what to do

i request all sr traders to educate me on that becoz same thing happened with me i put uo a sl on 1 bar below previous close

Keep it away from the noise. If you are going to enter a boxing ring with your guard down and chin thrust out, you are asking to be socked, and believe me you will be.

bvpraveen · #4 27th February 2007, 01:47 PM

Quote:

Originally Posted by innocent_trader

.... i've seen how bad it feels when u sell ur stock at a lower level to avoid big loss, and then within minutes it bounces back to your desired level

it really hurts man, .....

Hi,

What if the stock didn't bounce? What will you usually do?

Praveen.

GRORICH · #5 27th February 2007, 02:36 PM

Dear Bvpraveen,

The importance of SL would not be understood in volatile market like this. In volatile markets, which we are witnessing now, SLs are bound to be breached and sometimes the scrip may bounce back. The only option left to us , if we want to stick to that trade , is to take position again.

When our guess about market direction goes wrong, only SL can save our skin.
So whatever be situation , dont forget your SL . One suggestion worth considering could be have a wider SL than what you apply now.
Mohan

CreditViolet · #6 27th February 2007, 02:53 PM

Quote:

Originally Posted by kedarvb

I understand he imp of sl order, but sometimes it happens that in volatile mkt,
stock can reach sl level our order will be executed & then it will take u turn
to our target price
so we unnecessary accept losses & if we donot put sl , then our capital comes in danger

what to do

i request all sr traders to educate me on that becoz same thing happened with me i put uo a sl on 1 bar below previous close

Try a Keltner Channel with 20 SMA and 2-2.5 setting on a 5 Min Chart

bvpraveen · #7 27th February 2007, 03:14 PM

Quote:

Originally Posted by GRORICH

Dear Bvpraveen,

The importance of SL would not be understood in volatile market like this. In volatile markets, which we are witnessing now, SLs are bound to be breached and sometimes the scrip may bounce back. The only option left to us , if we want to stick to that trade , is to take position again.

When our guess about market direction goes wrong, only SL can save our skin.
So whatever be situation , dont forget your SL . One suggestion worth considering could be have a wider SL than what you apply now.
Mohan

Hi Mohan,

I'm completely aware of the importance of stoploss. I was't asking his suggestion...I was just trying to tell him the importance of SL when the stock doesn't bounce. He was telling that it hurts him when he tries to use the SL, as it stops him out when the stock again bounces. I wonder what he will do when he doesn't use SL and the stock doesn't bounce. That loss will be far more than that of SL trigger.

Hope I clarified the points.

Regards,
Praveen.

GRORICH · #8 27th February 2007, 03:43 PM

Quote:

Originally Posted by bvpraveen

Hi Mohan,

I'm completely aware of the importance of stoploss. I was't asking his suggestion...I was just trying to tell him the importance of SL when the stock doesn't bounce. He was telling that it hurts him when he tries to use the SL, as it stops him out when the stock again bounces. I wonder what he will do when he doesn't use SL and the stock doesn't bounce. That loss will be far more than that of SL trigger.

Hope I clarified the points.

Regards,
Praveen.

Dear Praveen,
Sorry for my reply ` Stop Loss ` . It was not intended to you. But I tried to reply to the query of Innocent_trader , who said that placing SL hurts. By mistake , I poted my reply to you. It was becasue I do not know how to use this forum properly.

Regards,
Mohan

bvpraveen · #9 27th February 2007, 04:03 PM

Quote:

Originally Posted by GRORICH

Dear Praveen,
Sorry for my reply ` Stop Loss ` . It was not intended to you. But I tried to reply to the query of Innocent_trader , who said that placing SL hurts. By mistake , I poted my reply to you. It was becasue I do not know how to use this forum properly.

Regards,
Mohan

Hey, no problem.

Praveen.

innocent_trader · #10 27th February 2007, 04:18 PM

Quote:

Originally Posted by bvpraveen

Hi,

What if the stock didn't bounce? What will you usually do?

Praveen.

i think its best not to take any long positions in today's market as it has become very volatile as of now, however using right sl with stocks like bdrpur chini, dhmpur sugar can help in avoiding the bitter taste in your tea

Similar Threads for: stop Loss
Thread	Thread Starter	Forum	Replies	Last Post
Stop Loss	captaray	Introductions	8	6th March 2008 05:40 PM
Stop Loss	LEYAKATH	Equities	2	29th October 2007 11:28 AM
Stop Loss	rkgoyal_98	Trading Psychology	4	13th January 2007 07:57 PM
stop loss	foolish fellow	Brokers & Demat Matters	0	18th November 2006 10:42 AM
How is stop loss ?	LEYAKATH	Brokers & Demat Matters	1	15th May 2006 11:49 PM