#ProfitProtector: Stop-Loss that dynamically adjusts with markets
Deciding when to exit a position can be tricky, with factors like company reports, rule changes, and global news influencing market moves.
We often exit too early, missing out on profits, or hold on too long, resulting in bigger losses.
But now, there’s a better way to manage your trades and exit your positions more efficiently.
Introducing, Trailing Stop-Loss with GTT orders
A smart Stop-Loss order that adjusts as the market moves. For instance, you buy a stock at ₹100 and place a Trailing Stop-Loss at ₹90, keeping a ₹10 gap. If the stock price rises to ₹110, the stop loss adjusts to ₹100, maintaining the gap. As the price reaches ₹130, the stop loss becomes ₹120. If the stock price then falls, the stop loss doesn’t drop; it stays at ₹120. This way, it locks in profits when the stock rises, but doesn’t reduce when the stock falls, protecting you from bigger losses.
Why should you use a Trailing Stop-Loss
Profit lock & roll: As the market climbs, locks in profits while riding the wave
Cap your losses: To exit at the right time
Say goodbye to emotions: Automate your exit strategy, keeping panic and greed out
Your trades, your rules: Customise as per your risk appetite
Use with GTT orders: Make your entry and exit automatic and more efficient
Tips for using Trailing Stop-Loss effectively
Setting the right distance: Consider the scrip’s volatility and your personal risk tolerance. A distance too close may lead to premature sale, while too far might result in diminished profits.
Regular monitoring and adjustment: As the scrip price moves in your favour, it’s crucial to regularly review and adjust your Trailing Stop Loss
Strategic combination: Trailing Stop-Loss can be effectively combined with other trading strategies, such as trend following or technical analysis, to enhance decision-making and profitability
Do let us know your experience with this feature.
Happy Trading.
-Samit
Product, Upstox