I am new to trading. Kindly help me answering my questions. My apologies if you find them silly.
I read a lot over the internet to use stop loss orders to protect our investments. However some things are not yet clear. My questions are below:
Are stop loss orders used only in “Intraday trading” and short term holdings like a couple of weeks or 1 month?
Assume I start trading today for the 1st time in my life with zero holdings in my account. I do some research and decide to buy 100 stocks of XXX which is currently trading at Rs. 100/- per share and I don’t have plans of holding on to them for a long time. I understand that I can buy the 100 shares by placing either a ‘buy market order’ or ‘buy limit order’. Now, in the same ‘buy order’ form, can I use stop loss? say I want to set the trigger at Rs. 90.
OR should I first buy using the ‘buy order’ and then place a 2nd ‘Sell stop loss order’ with trigger at Rs. 90?
If I plan to buy stocks and hold them for months or years together with the intention of long term wealth creation, then I need not worry about the intermittent fall in stock prices and hence be least bothered about placing stop loss orders right?