SmartLoss helps users place stop loss orders with one click, daily!
Many of our customers told us that they find setting stop loss daily as a tedious process. We have simplified it for you and removed all the mental calculations needed to set the stop loss with just one click.
Every morning, pre-market, you will get a notification from SaralStocks mobile app to set stop loss limits on your Portfolio stocks. All you do is click Submit on the app after verifying that the prices set by SmartLoss are valid. Needless to say, SmartLoss prices are determined by the rules you yourself have set in SaralStocks. These rules you create are simple to understand and simple to set!
The orders are then pushed to respective broker. We currently offer the service for our users who are Zerodha or Upstox customers.
So, no more forgetting to set stop loss and losing significant amount of money!
Selling a stock at a set loss level is as important as buying the stock at the right price when things go wrong with that particular stock. To understand the reason consider this: when you lose 5% on a stock, 5.25% gain is required to recover your capital and if you lose 20% then you need 25% gain. Notice it is not 20% gain to recover 20% loss. The problem becomes more severe as your loss level goes up. Thus for 40% loss, the gain would be have to be more than 60% (!) which is very hard to achieve for any stock. This is one reason why investors lose money and get disheartened with stock market.
See the graph below for the explanation.
When you see a falling stock which could be like a “falling knife”, it is best to sell and minimize your losses and then redeploy the cash when stock or markets show an upward trend.
You can either set specific values as limits, or set Rules for when stop loss should be triggered, say x% below LTP.