“What is the difference between directing selling a stock and puting a stop loss to sell a stock ?”

When you usually sell a stock, you will get the share price at the current market value.

If the share price is Rs 224 and you sell, you will get this price.

If you set a stop loss, you will continue to hold the shares — till a certain point.

Let’s take an example:


Share price: Rs 224

Your set stop loss: Rs 220

Now, if the share price rises, the share won’t be sold.

Let’s say it falls to Rs 221. The shares won’t be sold.

But if it touches Rs 220, the stocks will be sold — because this is where you set the stop loss.

Stop loss helps you limit your downside while keeping your upside open.