 | | | | Overview | | | | It is a price level or a mechanism that forces a trader to take/book losses in a losing position instead of letting them grow any bigger. Ideally a Stop-loss level should be decided as soon as a trade is executed. If a stock say ABC is bought at 25$, Stop-loss for it can be kept at a price level somewhat lower than 25$. It can be 24, 23, 20 or even 15$. Let us assume the Stop-loss is kept at 20$. This means if the price of ABC, after having bought at 25$, goes below 20$, one should close the position by selling it. 5$ is the loss the buyer is limiting to. This might be little confusing for novice traders because it involves closing a position willingly at a loss! Remember: In a long position, the Stop-loss level is usually lower than the entry price. | | | | Likewise if a person Shorts (what is this term? It means sell first, even if you don't own the stock with the hope to buy it back later at a lower price) ABC stocks at 25$, he should keep a Stop-loss at any price higher than 25$. Say if it was kept at 30$, this means if the price moves up contrary to the initial expectations of it going down, and touches 30$, one should call it a quit and square up the position. Thus, in a short sell, the Stop-loss price is higher than the price at which the stock was sold. | | | | Description | | | Stop-loss is a widely used term in investment circles. As the name says, it is a price level at which one should stop or limit his losses in a position. Investing or trading is like gambling when one looks at from the outcome perspective. When a person gambles or speculates, he does not know what the outcome will be. He would hope the outcome to be in his favor but it could very well go against him. The same thing goes for investing or trading. When someone buys a stock, he might be thinking, and to a great extent hoping, that the stock price would go up, but it could very well go down. So what should a person do if the prices go contrary to one's expectations? | | | | There are two alternatives: (i) He can continue to hold it believing, and hoping, that it will ultimately go up; or (ii) He can blame the unexpected mess on his wrong selection, bad judgment, bad timing or on circumstances/development beyond his control or imagination, and… get out of the position | | | | | | | | Key features | | | - Automated system: In this you don't need to check the security price it is coming to that level or not. It will automatically generate alert when it will reach to that level.
- Multiple databases: It supports multiple databases. You can also choose input from one database and give output to other database.
- Easy configuration: it is easy to configure with client database. Client needs to give server name, username and password and it will show table name and field name automatically. After that it will automatically work on mapped tables.
- Works with the current market prices those are in you database coming from I Q Feed. You don't need to fill or change current prices again and again into system. It can deal with your database after configuration application with your database.
- Work on wide Scope: It can find more securities which are more stable and can give more growth on which you are not giving attention.
- You don't need to sit on computer to see again -2 prices at which you want to deal. Just give the prices on which you want to deal it will give alert when it will come to that price.
- Generate alerts for all the security if any security is satisfying the price values or shows stability.
- Efficient and Error Free: This product is efficient and error free. It is fully tested. .
- Secure: You database details and your trading that you are doing it will always be on your end. So, it is fully secure.
- Easy to Use: This product is easy to use.
| | | | What are the benefits? | | | | Automation & Time Saving: | | | | By using StopLoss tool one can save the time. So, user doesn't need to bother about the price. System will automatically give alert that security has been reached to the particular price. | | | | Help in better planning: | | | | This tool helps to better plan by entering the % or price parameter. So, user doesn't need to calculate it first in percentage and then run the process. User can directly run the process by entering the price directly. | | | | Powerful financial portfolio management: | | | | Tool to monitor and analyze performance of investments. It can easily monitor worldwide market indices, multiple portfolios, updated automatically. | | | | |
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