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Navnish Bansal tells us How we Calculate a Target & Stop Loss

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Navnish Bansal
Navnish Bansal tells us How we Calculate a Target & Stop Loss

Navnish Bansal  says that financial investments advisory group at A1 Intraday Tips has attempted to discuss the significance of Target & Stop loss in the NSE Share Market.

What is the Target & Stop Loss?

We encourage all traders, that whenever a trader or an Investor purchases or sells the share/stock he should likewise choose the target and stop loss for that specific stock to avoid loss of his capitalNavnish Bansal says  That when the share market is increasing, investors/ traders ought to purchase the share/ stock, set a target and stop loss. We want to discuss this by providing a live trade example Purchase Reliance @ 1000 target 1025 and stop loss 980. Same way if the stock price goes down and makes low of 980, which is the stop loss fixed by the trader, a trader needs to book loss by offering the shares @ 980. If the Market remains in bearish pattern and the market is decreasing, investors/traders can short offer to make  profit. Navnish bansal thinks that Firstbriefly sell the stock and after that purchase the share, also is an excellent idea to make money in bearish markets. Again we wish to offer a live trade example of brief selling, so that an amateur/ beginner in trading can understand the idea much better, and can win sell stock exchanges. Suppose a Trader Ajay plans to Sell Maruti @ 5000 for target's 4700 and stop loss 5150. Exact same method suppose if stock goes up and makes high of 5150, stop loss will get triggered.

How many kinds of investors?

Typically there are three types of Investors. Intraday Traders (On day-to-day Basis).Short-term Investor (Invest For 2 to 3 Months). Long Term Investor (Invest For minimum 1 Year).

How do you compute a target & stop loss cost for a stock?

Target & Stop Loss for Positional Trades. If you are taking a Short term/ long term Positional trade, computing Share/ stock target & stop loss rates relies on a lot of information, Fundamental analysis of the company, News on New orders, Mergers, etc. Navnish Bansal  will help you to set a target and stop loss for the stock. Target and stop loss, can utilize as figures so as to avoid huge losses and to book great earnings too. Navnish bansal gives  advises a Target of 10-15% for Short term trades and 25-30% for long term trades. Likewise a Stop loss needs to be set at 8-10% for short term and 12-15% for long term trades.

Target & Stop Loss for Day/ Intraday Trades.

A Well Research stock using technical analysis should be positioned at 1.25% to 1.5% for intraday trades in the NSE Market. A stop loss must be set at 1.5% to 1.75% for intraday trades to prevent loss of capital. A Trader needs to be adjustable in repairing the target and stop loss in unstable markets. This must be done sometimes just if the market is very volatile only.

 
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