Share market success hinges on grasping share price, target price, and stop loss – vital for risk-adjusted investing.
The **share price** shows the instantaneous trading value of a stock, driven by market forces and company-specific news.
**Target price** is a researched estimate of future price levels, aiding in setting realistic expectations. Analysts use DCF models or comparables to arrive at figures like ₹120 from today’s ₹90.
**Stop loss** is indispensable for loss limitation, executing sells at predefined levels to preserve capital. Ideal for volatile stocks, it automates discipline – e.g., 8% below purchase price.
Integrating these into your strategy fosters better entry/exit points, portfolio health, and long-term wealth creation in stock trading.