Some Technical Jargons
In the stock market Entry, Exit, Stop Loss, Target (TGT), and Trailing Stop Loss are important terms that investors use to manage their trades. Here's what each term means:
1. Entry: Entry refers to the price at which an investor buys a stock or other security. This is the point at which the investor enters the trade.
2. Exit: Exit refers to the price at which an investor sells a stock or other security. This is the point at which the investor exits the trade.
3. Stop Loss: Stop Loss is a price level at which an investor sets a limit to automatically sell their stock if the price falls below a certain point. This is to limit the potential loss in case the trade goes against them.
4. Target: Target is a price level at which an investor sets a limit to automatically sell their stock if the price rises above a certain point. This is to lock in profits when the trade is going in their favor.
5. Trailing Stop Loss: Trailing Stop Loss is a dynamic Stop Loss that moves up or down in tandem with the stock price. The investor sets a percentage or dollar amount below the current market price, and the Stop Loss level automatically moves up if the stock price rises, but stays in place if the stock price falls. This allows the investor to lock in profits while still allowing for some flexibility for further upside potential.
By using these terms and strategies, investors can better manage their trades and mitigate potential losses while maximizing potential gains. It's important to note that these strategies can be different for each individual investor, and they should carefully consider their goals and risk tolerance before implementing any specific strategy.
