I keep on hearing advise that one should keep on moving the stoploss as the price goes higher in a long position.
I can understand this on an intraday basis when one puts a buy order with the stoploss. However, how is this done for overnight long positions?
As an example, assume that I would bought Hindalco today Rs. 250 and my target is 1%. And my stoploss was 2%.
So if the price remain set to Rs. 250, my stoploss will remain at five rupees less which is Rs. 245.
However, is the price of the stock was to Rs. 260, my stoploss should also go to Rs. 2% of 260 = 5.2 Rs Less than 260 which is Rs 254.8.
Now that I already have the stock with me on the overnight position, I cannot put a buy order with the stoploss.
Do I have to manually put his sell order for Rs 254.8 ? And then cancel and change it again when the price goes from 260 to 261?
Thank you for any inputs