Tips and Tricks


Check the order screen on the trading portal of your stockbroker, and you will see the stop-loss option. A stop-loss helps you reduce your losses as it lets you select a price at which your position will be automatically squared off. For instance, if you are purchasing 100 shares of SBI at Rs. 350 and expect its price to rise, you can put a stop loss at Rs. 345.

If at all the stock price falls, your 100 shares will be automatically squared off when it reaches Rs. 345. If you want to know how to invest in the stock market successfully, it is essential to use stop-loss on all of your trades at least in your initial days of trading. Most brokers now allow you to place a stop loss at the time you place the buy/sell order.

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