How to place buy and sell stop orders with stoplosses

[spynkz]

Hi,

One question for you gurus out there.

I want to trade breakouts, I'll post a separate thread on this topic.
Currently, I am not able to place a buy stop order and sell stop order.

Can someone please give me steps how to place the following orders for breakouts.
assuming current market price is 85, and I want to buy a stock with trigger at 87, i.e. only if it touches or crosses 87 and with a buy limit of 88.
I also want to sell the stock at 100.
I also want to place a stop loss of 83.

Similiarly I want to place a sell order for a breakdown.
Sell trigger 70, sell limit 69,
Sell target of 80
Stop loss of 68.

Can I place both these orders together in any online trader terminal ? Is there a sequence I need to follow?.
I tried all sort of things, but the stock is getting bought at CMP :annoyed:, where am going wrong ?.

Please help.

Thanks,
Shesh

 

[veluri1967]

Hi,

One question for you gurus out there.

I want to trade breakouts, I'll post a separate thread on this topic.
Currently, I am not able to place a buy stop order and sell stop order.

Can someone please give me steps how to place the following orders for breakouts.
assuming current market price is 85, and I want to buy a stock with trigger at 87, i.e. only if it touches or crosses 87 and with a buy limit of 88.
I also want to sell the stock at 100.
I also want to place a stop loss of 83.

Similiarly I want to place a sell order for a breakdown.
Sell trigger 70, sell limit 69,
Sell target of 80
Stop loss of 68.

Can I place both these orders together in any online trader terminal ? Is there a sequence I need to follow?.
I tried all sort of things, but the stock is getting bought at CMP :annoyed:, where am going wrong ?.

Please help.

Thanks,
Shesh

What trading platform are you using?

The common problem with many platforms is that you cannot place orders for a buy below CMP and similarly you cannot place Sell order above CMP.

Even in this case of restrictions, you can sail through.

First place a buy stop loss order above cmp because that is going to be your break out upwards. When it gets filled immediately you can put stop loss order because your stop loss by then is below CMP hence should have no problem. Now, the problem is with Sell stop order above CMP. Unless your price reaches well above the target you cannot place sell stop order. The best thing to do is just modify your stop loss order as the CMP progresses to your target. This way you can protect your gains and not to loose a winning trade.

 

[spynkz]

Thanks veluri1967,

I am using HDFCsec, Sharekhan and they do not support this feature. I have subscribed to IndiaInfoline too, and I hope it supports this feature.

I wish there was a broker where I could place a all in one order (buy/sell + trailing stop loss (price or %age)), so I could go on placing orders and square off/ forget about them. I have traded with ameritrade and it had so many features, I think only international competition can wake our brokerages, gosh, so many limitations!. I know the american brokerages are heavy, but there they pay more for everything other than gas (petrol), but that cannot be the reason for not having these features.
I am keen to know what our trader community is doing to get these features in. "Jago Grahak Jago".

Till then, I guess I'll - itne me hi kaam chalaofy, and keep modifying my stoploss orders of one stock, when my other setups go for a toss - damn!

 

[netman]

I place 3 orders,

1). Buy or Sell if shorting.
2). 1st Profit level
3). Stop loss level

AND If target is achieved, or SL is hit cancel of other order is just a key combo.

 

[spynkz]

I place 3 orders,

1). Buy or Sell if shorting.
2). 1st Profit level
3). Stop loss level

AND If target is achieved, or SL is hit cancel of other order is just a key combo.

Hi netman,

Thanks for your kind response. Please tell us which broker you are using. as some brokers do not allow you to place a sell order which is above CMP. so I hate to wait till I place my target sell. If I can have a stop loss sell, why not a stop profit sell also. Isn't Greed is more dangerous

So you need to place three orders? can you please tell me if I did this right.

Assuming CMP is 85, I place the following orders simultaneously (am I right?, or do I have to wait for the buy order to be executed before placing the other two ?)

1. Limit Buy MYSTOCK @88 Stop Lot Trigger @87
2. Market Sell MYSTOCK Trigger @100
3. Market Sell MYSTOCK Trigger @83.

If I did not wait for the buy order to be executed, Isn't there a chance of my stop loss trigger getting executed as a short sell? To avoid this should I alway place my orders in cash instead of margin ?
Of course if 3 is triggered, I have to cancel 1 and 2 . I may be wrong

Please clarify.