What is the best way to put a stop loss for long term stock holdings?

General
1

I am a beginner. So far I have known about putting stop loss is that we can use a stop loss order for the same day only. But if I have 50 or 100 stocks holding then how will I place stop loss orders every day? Is there any solution or I have wrong information?

2

If you hold 50 or 100 stocks in long-term holdings then you are not diversifying, but diworsifying.
Understand the optimal number of stocks to hold in a long-term portfolio

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3

You want your name featured in the Guinness World Records is it? Dude, as @saiography has said, diversify don’t diworsify.

4

Guys, I guess you are misinterpreting my question. I am not actually holding 100 stocks. I was just giving an example. Okay, if I have 20 stocks in my portfolio then will I have to place 20 stop loss orders every day? Or is there any other way to automatically sell my stocks when they hit stop loss?

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5

dear you have to put manually in zerodha
in some other depository participant you man have order called GTC

6

Ok. Thanks. This is what I wanted to know. It means zerodha has GTD (Good Till Day) orders while some others have GTC (Good Till Cancel) orders. So, you people on zerodha place stop loss orders for all stocks everyday or only some of them those you think can be down for some reason?

7

Identify high beta stocks in your portfolio, or those stocks which fall more with Nifty, or which are volatile.

Put stop loss only for them.

Another thing is never put stop loss for blue chips, they are meant to be averaged when they fall. (Well Tata Motors may be an exception LOL)

But for midcaps and small caps bets, you can put stop loss.

Now if you say someone has 50-100 midcaps and high beta stocks, then they deserve to do that much work of putting 50-100 stop losses, because their profit expectation is also 100-200% assuming this is the reason they took all small-mid caps

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8

Thanks a lot. You answered completely to my query. Actually I have some small caps stocks that I bought initially for learning purpose. Their value is under thousand. 8-10 stocks are there but some of them are up to 50% down. So I thought I made a big mistake by holding such shares. Well I am not going to sell them but definitely not going to buy such shares as well and will put stop loss in case buy any small n mid caps.

BTW bharti airtel should be different than tata motors, I guess. I have invested in it :wink:

9

Does that mean we need to place the GTC order every day for all my high beta stocks?

10

To put a Stoploss for your holdings, you can use Good Till Triggered orders, these orders are valid for period of one year. Can go through this post to learn more,

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11

Extending the query further as to what is a good strategy to decide the SL for a stock. I guess I read somewhere that ATR is a good method among a few out there to decide the SL price for a stock. Can someone please help understand what this ATR is (may be a couple of pointers to provide more insight) ?

Thanks in advance.

12

ATR ( average true range ) is an volatility indicator… Which show the volatility of the stock…

If you don’t want to get stopped out early and then seeing you trade to move in your direction… then you have to give your trade which we called room to breathe… So u can put your SL 1 ATR below the swing high/ swing low…