Author Topic: Stop Loss Order  (Read 5149 times)

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Offline Farzooq

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Stop Loss Order
« Reply #-1 on: September 25, 2010, 06:30:30 PM »

Importance of stoploss ?
Types of stoploss ?
How to place a stop ?
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Stop Loss Order
« Reply #-1 on: September 25, 2010, 06:30:30 PM »

Offline 007

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Re: Stop Loss Order
« on: September 25, 2010, 06:34:31 PM »
dont tell me you dont know the answer to any of these Questions  :biggrin:

Offline Farzooq

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Re: Stop Loss Order
« Reply #1 on: September 25, 2010, 06:39:31 PM »

What Does Stop-Loss Order Mean?
An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position.

Also known as a "stop order" or "stop-market order". Investopedia explains Stop-Loss Order
Setting a stop-loss order for 10% below the price you paid for the stock will limit your loss to 10%. This strategy allows investors to determine their loss limit in advance, preventing emotional decision-making.

It's also a great idea to use a stop order before you leave for holidays or enter a situation in which you will be unable to watch your stocks for an extended period of time.
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Offline asimsaim

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Re: Stop Loss Order
« Reply #2 on: September 25, 2010, 10:16:55 PM »
Bhaion kay layay , mein 2 percent Rule ka bi zikar kkarana chahta hoon .

Professinal Investors  kisee bi trade mein - apnay  pass mojood  rakam  ka  2 percent  se zyada nahi lagatay hein.   Maslan kisee kay pass das laakh hay.  or wo Ahsl buy karna chahta hay to woh ,  40 Hazar  se zyada AHSL mein entry nahee dalay ga.     

 aik waqat mein utnee hi trades open karain jitnee sanbhaal saktay hon.   :biggthumpup:

Offline asimsaim

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Re: Stop Loss Order
« Reply #3 on: September 25, 2010, 10:21:53 PM »
Or haan meri tarah  ghalat percentage be na calculate karain.    :laugh:

remember Cash is King .  :biggthumpup:

gumnam

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Re: Stop Loss Order
« Reply #4 on: September 26, 2010, 03:37:10 PM »
stop loss ahhh, once upon a time there was a trader, how put a stop loss on jscl  @ 532.10 ! and then price down till 232 eat only his holding and gone up to 568!!!!! and after 5 days test 600 can't forget this every in his life.(7-5-2008 to 14-5-2008) X(10000)   :down: :down:

gumnam

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Re: Stop Loss Order
« Reply #5 on: September 26, 2010, 03:39:06 PM »
correction> price down till 532.10  :s1:

Offline Farzooq

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Re: Stop Loss Order
« Reply #6 on: December 09, 2010, 03:15:03 PM »
stoploss order wasnt placed ??
yes u can watch rates by mobile
www.investfinance.com.pk/market.aspx
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Offline ihashishin

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Re: Stop Loss Order
« Reply #7 on: December 09, 2010, 04:00:59 PM »
stoploss order wasnt placed ??
yes u can watch rates by mobile
www.investfinance.com.pk/market.aspx

you keep saying stop loss order and i feel stupid asking this but how do you place a stop loss order?

what i know is you cant place an order to execute only when a certain price is hit, atleast at igi... like i can place a stoploss sell order but that is only so that the order will stop selling if it drops below a certain price which is not what i want because my volumes are only like 4-5000 therefore the volume would be executed as a market order

DISCLAIMER: Caveat emptor.

Offline Poker Face

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Re: Stop Loss Order
« Reply #8 on: December 09, 2010, 04:08:36 PM »
@Ihashishin
If lets say I placed a stop loss order of 5000 AHCL at 25.00, and currently it was trading at 25.50, then when AHCL will drop to 25.00, my order will automatically get executed. However, till the time it trades at or above 25.01, my order will be there but stand by. Thats what I do.
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Offline Farzooq

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Re: Stop Loss Order
« Reply #9 on: December 09, 2010, 04:13:36 PM »
stoploss order wasnt placed ??
yes u can watch rates by mobile
www.investfinance.com.pk/market.aspx

you keep saying stop loss order and i feel stupid asking this but how do you place a stop loss order?

what i know is you cant place an order to execute only when a certain price is hit, atleast at igi... like i can place a stoploss sell order but that is only so that the order will stop selling if it drops below a certain price which is not what i want because my volumes are only like 4-5000 therefore the volume would be executed as a market order



 :brickwall:

if u trade online press f5 order window has 3 options limit market stoploss
select stoploss and enter stop price and trigger price(which is usually placed such to ensure stop price hits)

if u r not trading online ur trader should know ur stoploss and should ensure its sold when stop price hits
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Offline Poker Face

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Re: Stop Loss Order
« Reply #10 on: December 09, 2010, 04:20:15 PM »
In liquid stocks like AHCL, never place a trigger price and stop loss sell price difference of more than 5 paisa, like in above example, I would put a trigger of anywhere between 25.00 and 25.05. However one can put it higher as much as one wants.
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Offline ihashishin

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Re: Stop Loss Order
« Reply #11 on: December 09, 2010, 04:31:41 PM »
thanks for the responses

so if for example in AHCL when it was trading at 25.5 in the morning and i had entered by pressing F5
the volume=1000
the price=24.99
and the trigger price=25.1

then when and what would have happened
DISCLAIMER: Caveat emptor.

Offline Farzooq

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Re: Stop Loss Order
« Reply #12 on: December 09, 2010, 04:44:01 PM »
thanks for the responses

so if for example in AHCL when it was trading at 25.5 in the morning and i had entered by pressing F5
the volume=1000
the price=24.99
and the trigger price=25.1

then when and what would have happened

It would trigger at 25.1 and sold at mrkt till 24.99
If it doesnt sells ur sell limit will be placed at 24.99
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Offline Poker Face

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Re: Stop Loss Order
« Reply #13 on: December 09, 2010, 04:46:06 PM »
when 25.10 level will reach, it will act as a trigger for placing your sell order and your sell order of 1000 AHCL @ 24.99 will be placed and if anyone had placed a BUY order @ lets say 25.05, your 1000 AHCL will be sold at 25.05 to that person.
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Offline ihashishin

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Re: Stop Loss Order
« Reply #14 on: December 09, 2010, 05:16:39 PM »
knowing this would have saved me alot of money over the last three years  :mad:

ive asked igi about this many times and they said that the stoploss order is treated as a market order and will stop selling at the entered price and is only for large orders (they didnt say but implied Rs10,00,000 orders) where you would like to sell upto a point

rather then what you two explained of selling after a point "trigger" till a point "stoploss" (hope thats it)

im going to try this with 10 shares of something or the other tomorrow

i think i might write ch**tia with a permanent marker on my forehead for the rest of the day  :banana:
DISCLAIMER: Caveat emptor.

Offline ihashishin

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Re: Stop Loss Order
« Reply #15 on: December 09, 2010, 05:24:29 PM »
something else just occurred to me, what if the price jumped down from above the trigger price to below the sell price?
DISCLAIMER: Caveat emptor.

Offline Poker Face

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Re: Stop Loss Order
« Reply #16 on: December 09, 2010, 05:37:25 PM »
In that case, it will be your bad luck! Normally it will only happen when someone sells a large quantity of shares in deep despair. lets say some puts a normal sell order of 2 million AHCL at 24.50 when current price was 25.50. Then your stop loss is screwed.
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Offline Farzooq

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Re: Stop Loss Order
« Reply #17 on: December 09, 2010, 05:56:55 PM »
something else just occurred to me, what if the price jumped down from above the trigger price to below the sell price?

This has happened with me a lot of times even in highly liquid scrips
Stops hit but ur shares are not sold
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Offline stockist

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Re: Stop Loss Order
« Reply #18 on: December 19, 2010, 01:04:54 PM »
Very informative topic
for me atleast
thanks every body
« Last Edit: December 19, 2010, 11:25:50 PM by saboor »

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