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Stop loss - How to place a Stop Loss Order on Groww | Trading | Get to Know Groww [DEMO in Hindi] - YouTube
Channel: Groww
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I would like to inform you in the beginning of the video
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If you feel you want to apply in CAMS IPO or any other IPO
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IPO Feature is now live on Groww
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This feature is only live on the web. You can log in through your account at groww.in via your account
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you can go to stocks and from there you can apply in IPO
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If you have not opened Demat account in Groww yet. Open your Demat account
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after which you can apply in IPO
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Hello Friends, I Jagdeep Singh, Welcome you to Groww's Youtube Channel
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Like you know, we all are a family learning from each other. Other than that, if we want to invest
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We use Groww platform which simplifies our investment journey. We support each other in that journey.
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It's important that you know of Groww, the new features on Groww, the benefits, and its usage
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We have brought a brand new series today, Get to know Groww
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wherein we will talk about the new features of Groww that will help you further in the decision making
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Let's start this video. In this video, we will talk about the new feature and how to use it with a demo
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This feature's name is Stop Loss
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Why is stop-loss important to us? I will tell you about this new feature bought by Groww
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and how to place a stop-loss order on Groww?
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Friends, when it's about investing in stocks, two things are very important: Profit & Loss
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which completes your investment journey
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Every investor's objective here is to maximize the profit and minimize the loss
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To reduce the loss, you can do it according to your risk appetite with a good investment
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If its stock price starts going down, how can you reduce your loss, this feature is very important there
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Its name is Stop Loss. Stop Loss has many uses, I will tell you how it can reduce losses
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In the second part, I will tell you the use of the stop-loss which many people might not tell you about
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First, I will talk about how stop-loss reduces your losses
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Say if you invested in a stock, stock A, it is trading at Rs 100, you invested and forgot about it
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after 4,5 days when you saw it, its price has become Rs 120, means its fairly profitable to you
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Now you know of news which can impact stock A drastically. Say if a case was going on in Supreme Court
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If the verdict is against it, the company might go down by 5 to 10% share value
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There are chances that your profit might go down in a day
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Now coming to stop loss, if you are trading at Rs 120 now, you want to prevent losses, you will place
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a stop loss. Now, what is a stop-loss order? It reduces your losses and when it reaches a particular
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position it makes it steer off. I will give you more example of its usage
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Now say if a share is trading at Rs 120, you feel if it falls to Rs 115 then it will keep trading downwards
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You want to sell off the whole share when it reaches Rs 115
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You can place a stop loss here if you place a sell order at Rs 115 trigger price
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the moment it reaches that price the order will get executed
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and your buy position will steer off and shares would get sold at Rs 115
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If after Rs 115, it goes down constantly to Rs 110, 105, then your loss came down to Rs 115 only
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You don't have to sit in front of the TV the whole day for it
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if you feel the shares can go down today if you put a stop-loss order today
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then your work is over. You can move on to your normal life.
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Remember if it reaches that level your stock will get executed
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Friends, if you would have tried putting a stop-loss order, you get confused as there are 2,3
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things about stop-loss that you cant correctly understand
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Those 3 things here are the Limit stop-loss order, the Market stop-loss order and the Trigger Price
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Here trigger price is very important, First I will tell you what is the meaning of trigger price
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Trigger price is the price when a particular order will go for execution. No, you will think about what is
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the difference between market price and limit price, if there is already a trigger price
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If your stock or order is trading at Rs 100, now say if you put a market stop-loss order
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then here you will put a trigger price at Rs 95. The moment that order will reach Rs 95
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it will go for execution
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It's possible that the order gets executed at Rs 94.8 or Rs 94, it will get executed according to the market order
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If a particular stock price is of Rs 100 when you put a market buy order
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buy order doesn't mean that it will be executed at Rs 100 only. Your order can be executed at Rs 101 or at Rs 99
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It depends on how much is the seller on and you had put in a market order
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The same stop loss happens in the case of the market order. It decides your trigger price on
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what point your stop-loss order will go for execution.
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Your stop loss will get executed at the same price. Now I will talk about Limit Stop Loss order.
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Here you have to give two inputs: Trigger price and Limit price.
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Now say if you had put a stop loss for a stock trading at Rs 100. You set the trigger price at Rs 99.
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Here if we are talking about limit price then you will have to put it at Rs 95 or down
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How does it work here is say if you the trigger price at Rs 99 and limit price as Rs 95 then the moment the price
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will come down to 95 then your order will go down for execution. The moment it goes down to Rs 94
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Your order will get executed
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You will have to take care of these things. Many people get confused that when I put a sell order
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Why can't I put it above the trigger price? With the stop loss order, you will have to take care of it.
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that if you are putting a sell limit stop-loss order then trigger price of Rs 95
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then limit price should be of Rs 95 or less
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You cant place a stop-loss order above that
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Now let me give you a live demo on how to place a stop-loss order. As you can see it on my screen
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Here I have opened HDFC Bank, I will show you here on how to place a stop loss order
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Here as you can see it on the screen, you can see the order details in the box
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where you can add a stop-loss order
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Before doing this demo, I would like to give a disclaimer that this script here is purely for educational purpose.
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I am not giving any recommendations to buy or sell the stock.
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You get option in Groww whether to buy or sell. You can choose delivery or intraday
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You can select NSE or BSE. You can choose the limit or market price.
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If you select the market price you get an input price here.
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You cant edit the price here. cause market order means that your order will directly get punched
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You are not putting any restrictions on the price. If you choose a limit order you can change your price here.
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Now I will talk about how you can put a stop-loss option. Here you can see the advanced option.
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Even on the app, you can see a clickable option called Advanced Option.
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When you click it here, you will get an option of stop-loss
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Now say I selected an option of stop loss. After that I pressed Continue.
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Here I can see how much should I put the trigger price. Now say I chose a stock at Rs 1050
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but I want the moment this stock goes down below Rs 1040, my stop loss order should get executed
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I will put my stop loss trigger as Rs 1040. The moment this stocks price will reach Rs 1040
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My order will be put for execution. If I have selected market order, I haven't included any price here
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The moment the stock will go for execution at Rs 1040, at the price at which it is available it will get executed
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But if I put a limit to it then I will have to add it in limit price
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Like I said the limit price should be lower than your trigger price
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If I add Rs 1039 here and press sell here then my order would get executed.
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I put my value, limit price, the trigger price then we will get an option to verify sell
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cause I will get an option of putting the pin then I can place a stop-loss order. It is very simple.
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If you were in buy position and you want to put a stop loss in sell.
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You can go to advance and choose a stop-loss order
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then add a trigger price and choose limit or market, whatever you feel is right then place a order
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then your loss will get capped. Whenever your share price will go below than that, it will get executed
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After this demo, you might have understood how important is the trigger price, market stop loss
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and limit stop loss and their difference. You can take care of these features and place an order
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A Stop-loss order doesn't just help you to place an order but if you have short sold in intraday then
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you add a buy stop loss as well. If you have bought first then you can add a stop loss order to sell.
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Now I will come to the second most important part which is more interesting
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Say if you don't have any position of any stock. If I didn't buy any stock before
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nor have I sold any shares before then can I add a stop-loss order directly
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If I can then what is its usage? In which cases shall I add a stop-loss order?
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if I don't have any position
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To answer that, you can stop loss without any position as well. How does it decide its usage?
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If I don't have any position, why not directly put a limit order. What is the benefit of stop-loss order here?
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I will tell you its benefit here. Say if there is a stock that is currently trading in Rs 90
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and you did the whole technical analysis
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If you are a trader and the moment this stock crosses Rs 100, then this stock will start racing up
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but you want to buy this stock when it will cross Rs 100. In that case, if its price is Rs 90 now.
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Can you add a limit order to buy at Rs 100? No, cause if you put a limit order thereof Rs 100 buy
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then your order will be executed at Rs 90. It won't wait to go till Rs 100 cause limit price
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gets executed at the best price
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best price which you have added or which is currently running in the market
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Here stop loss can help you create an aggressive position
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where you want that if the stock price goes above Rs 100, then you can buy it
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In this case, if you put a buy or sell stop loss, you add its trigger price as Rs 100
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then change the price accordingly in the market or limit, you can leave it
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The moment the price crosses Rs 100, your stop-loss order will get placed
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You will take a new position buy using a stop-loss order. If your hypothesis was right
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that if and when the stock reaches Rs 100, it will start racing up then
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you will get a good benefit out of it. Now say if that stock went till Rs 98 and came down
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It did not cross Rs 100 cause you had a done a good analysis, your stop-loss order would be intact like that
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it won't get executed. you safeguarded yourself that if the stock doesn't cross Rs 100 then not to buy
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but if it crosses Rs 100 then the order gets executed
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Stop Loss just doesn't help you to reduce your losses but also helps in taking positions
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where you had done your technical analysis. I hope you would have understood
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how is it fulfilling the two objectives, first to reduce your loss and to buy on the basis of your technical analysis
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that once the share crosses this cut off I should buy
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or when the share goes below a certain cut off it should be sold off
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If you want to take an aggressive stand here, you can use the stop loss feature
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Via Groww, I gave you an example of how to place a stop-loss order.
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Similarly, when you go to the app, there will be an option of advance options
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you can click on it, select the stop-loss option, put your trigger price then decide
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whether to put a limit order or market order. If you put market, you would not have to include the price
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If you put limit then you will have to put the limit price according to the trigger price
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as soon as you confirm it, your order will get placed.
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As soon as your trigger order will get touched, your order will gov for execution
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I hope you will take advantage of this feature and will try to place the stop-loss order. Friends, it's a good habit
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that when you do trading or investing, you should know the maximum loss you can take
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If I give an example of Yes Bank, at one time it was trading at Rs 400
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people felt that at below Rs 350 they will sell it off
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If they would have booked the loss, they would not have had to sell at Rs 14, Rs 15
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You should know with every stock, the maximum loss you can consume
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If you feel your limit to maximum consuming limit is going to get crossed
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, you can control it by booking a stop-loss order
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More than profit, it's better to control your losses.
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If you liked our video, comment below our video and give us feedback on our stop loss feature
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In this feature, we will be talking about more features which Groww has launched recently
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If you haven't subscribed to Groww's channel yet. Subscribe to it. Because we add 3 to 4 videos on
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educational purposes here which can help you in being a good and intelligent investor.
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Happy Investing!
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