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