How many kinds of investors?
Typically there are three types of Investors. Intraday Traders (On day-to-day Basis).Short-term Investor (Invest For 2 to 3 Months). Long Term Investor (Invest For minimum 1 Year).
How do you compute a target & stop loss cost for a stock?
Target & Stop Loss for Positional Trades. If you are taking a Short term/ long term Positional trade, computing Share/ stock target & stop loss rates relies on a lot of information, Fundamental analysis of the company, News on New orders, Mergers, etc. Navnish Bansal will help you to set a target and stop loss for the stock. Target and stop loss, can utilize as figures so as to avoid huge losses and to book great earnings too. Navnish bansal gives advises a Target of 10-15% for Short term trades and 25-30% for long term trades. Likewise a Stop loss needs to be set at 8-10% for short term and 12-15% for long term trades.
Target & Stop Loss for Day/ Intraday Trades.
A Well Research stock using technical analysis should be positioned at 1.25% to 1.5% for intraday trades in the NSE Market. A stop loss must be set at 1.5% to 1.75% for intraday trades to prevent loss of capital. A Trader needs to be adjustable in repairing the target and stop loss in unstable markets. This must be done sometimes just if the market is very volatile only.
