BUY vs SELL

#1
Hi Everyone,

I am a newbie in stock market. While going though sites like moneycontrol or economic times, in recos section experts comment on BUY/SELL.

Eg:- ACC Ltd is a 'SELL' call with a target of Rs 1170 and a stop loss of Rs 1226

Why is the stoploss amount more in sell call????
 
#2
Hi Everyone,

I am a newbie in stock market. While going though sites like moneycontrol or economic times, in recos section experts comment on BUY/SELL.

Eg:- ACC Ltd is a 'SELL' call with a target of Rs 1170 and a stop loss of Rs 1226

Why is the stoploss amount more in sell call????
if you are short selling share of ACC at 1200

If the stock goes down to 1170 you would make money

and the stock goes up to 1226 you would loss
 

Shikamaru

What a drag!!!
#3
First you should know the timeframe of your call,
Expert are mostly giving swing call not intraday calls
since intraday is more risky than swing trade

Most of level are based on historical support and resistance
or in other terms supply and demand

By the way, You can sell equity only in intraday,
only derivate like future and option can be sell and
hold for swing trade
 

rvm123

Active Member
#5
Suppose ACC is quoting at Rs.1200/-. Expert's call is to sell as he expects the rate may go down upto Rs.1175/-. Further he expects that if the scrip goes to Rs.1226/- and above, the chance of his target may not come. So he tells that if the rate goes to Rs.1226/- you stop SELLING. That is what is called stoploss at this juncture.

Hope I had explained and it is understood.
 

gemat

Active Member
#6
Hi Everyone,

I am a newbie in stock market. While going though sites like moneycontrol or economic times, in recos section experts comment on BUY/SELL.

Eg:- ACC Ltd is a 'SELL' call with a target of Rs 1170 and a stop loss of Rs 1226

Why is the stoploss amount more in sell call????
sell means shorting a stock i.e., you are selling a stock you don't own. you'r are borrowing and selling it at a higher rate hoping the price would fall. this is only allowed for intraday stocks, not deliverable. must compulsorily square off before market closes. just opposite to buying a stock and selling it at a higher price. you short a stock at 1170, if the price rises u incur a loss and when the price falls you would square off and book profit.