Loss is a word which dont sound good and puts lots of stress in mind.No body want to take loss.In financial markets also one has to take losses if securities is going against you.
Friends there is a great of controlling the losses that is by using stop loss .Lets understand in detail.
Stop loss means what??
What are advantages of stop loss
How to use trailing stops
What are the disadvantages of using a stop-loss
- Conclusion phase
when we purchase shares or xyz company ,we buy it on recommendations or ask somebody or by television channels or by media or may be by any other sources,but there is something we forget that is about our risk appetite and money management,apart from that too we forget to put stop-loss.When stop-loss is used correctly it can make lots of difference.This tool is available to everyone and has has access from everywhere in the globe.
Traders call it god of risk, Investor calls it life saver.Most investor and traders can benefit from it avoiding more on the position. Stop-loss is a direct item once it is activated you dont have to track it daily.There is function known as GTT once placed its valid for one year.
What Is a Stop-Loss Order?
A stop-loss order is an type of order executed by us through a broker to buy or sell a specific stock once the stock reaches a certain price.
A stop-loss helps to limit an investor or trader loss on a security or securities,For example, placing a stop-loss order for 3% below the price at which you bought the stock will limit your loss to 3% thats the maximum anyone can loose om that particular position. Lets assume you purchased TESLA at 410$ per share. Right after buying the stock, you placed a stop-loss order for 370,the stock falls below 370$, your shares will get sold at the the market price on that time .