Dear all,
I am new to trading and I am trying to understand stop loss trigger price and how it works. Despite lot of reading, I am still a bit unclear about it. Could one of you with experience consider the below hypothetical situation:
- I want to buy, say, L&T which is currently at 1196/-
- I place a limit order to buy at 1190/- and stop loss at 1160/-
- The above order is fully executed after some time at 1190/-
- Now the price starts falling.
The questions are:
- Will it automatically trigger a SELL order when price reaches 1160/-? (Note that the above order is already fully executed)
- Is there any scientific basis to determine stop loss price? (i.e. something like "it is the price which once reached the scrip will keep falling and not likely to change the trend during the day")
Thanks a lot for your help
I am new to trading and I am trying to understand stop loss trigger price and how it works. Despite lot of reading, I am still a bit unclear about it. Could one of you with experience consider the below hypothetical situation:
- I want to buy, say, L&T which is currently at 1196/-
- I place a limit order to buy at 1190/- and stop loss at 1160/-
- The above order is fully executed after some time at 1190/-
- Now the price starts falling.
The questions are:
- Will it automatically trigger a SELL order when price reaches 1160/-? (Note that the above order is already fully executed)
- Is there any scientific basis to determine stop loss price? (i.e. something like "it is the price which once reached the scrip will keep falling and not likely to change the trend during the day")
Thanks a lot for your help