Stop-loss critical now, says Market Guru Anil Singhvi, reveals top tip to cut risk
Zee Business Managing Editor Anil Singhvi has suggested stock market traders to maintain strict stop-loss and trailing stop-loss in the case of holding a particular stock.
Zee Business Managing Editor Anil Singhvi has suggested stock market traders to maintain strict stop-loss and trailing stop-loss in the case of holding a particular stock when in profit to minimise risk while doing stock specific trade. In fact, Singhvi advised traders to take a view from the index while making any investment or profit-booking decision as it is a broad indicator of the industry and a company is expected to follow the industry trend it belongs to.
Speaking on the importance of stop-loss and how does it help an investor to minimise risk, Anil Singhvi said, "Stock specific trade involves higher risk than the index as sometimes some stocks behave in a way other than the index - all stocks don't fall when the index is falling and similarly, all stocks doesn't scale-up when the index is rising. So, one must maintain stop-loss while taking any position in a stock and at the same time, if profit has been made and investpr wants to hold that stock as index is still giving positive signals, then trailing stop-loss should be maintained to minimise any kind of risk while holding the stock."
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Highlighting the importance of index view while making any entry or exit decision during a stock specific trade, Anil Singhvi said, "A company is generally expected to follow the broader industry trends. So, while making any investment decision, look at the industry outlook and once the investor is satisfied with the index trend, take a decision about the stock specific trade.
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स्टॉपलॉस लगाना अब बेहद जरूरी...अनिल सिंघवी ने कहा- अच्छी तेजी के बाद दायरे में रह सकता है बाजार... इंडेक्स को बेस बनाकर स्टॉपलॉस बदलते रहें...#EditorsTake #NSE #BSE #Sensex #Nifty #BankNifty @AnilSinghvi_ pic.twitter.com/8pHdfA7Ay3
— Zee Business (@ZeeBusiness) June 3, 2020
SInghvi added, "Also, what should be focused on is that some people have a tendency to expect more even when they are in profit. This is not a bad habit provided the investor is having an idea about the index. So, hold a stock if the index view is positive and if the index view is negative, it's better to book profit and exit from the stock position."
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