When a daily buy call is initiated, the SL use must be discretionary. For eg, in a market collapse or abnormal news, which is why every individual must know a degree of TA, so that he can see if the signal has been negated.
When you buy on a signal, you must use SL also on same or similar signals. 5% is the rough figure that could negate a signal. But not all times as I have seen. Sometimes a 10% SL must be used.
So if a signal is negated, then there is to be no re-entry in that scrip. Or you will burn your fingers. Like when there is a deep fall, one tends to see the short term profit, ignoring the fact that the scrip has negated the buy signal. There are 1000’s of scrip’s to choose from. Jump from one wagon to another….. remember to let go. No attachments or sentimental value to any scrip.
Over a period in time, you will better the signals you choose. Like for eg, I started with stochastic, RSI and MA’s…….. Then graduated to other exotic ones and now back to tweaking the simpler indicators…..
Fr eg, in last few days I have issued many calls and many of them moved down near to or crossed the SL, but the indicators never gave sell signal. For eg this one zoomed up to 30%+ SELMCL….. and still to go..
So in some you make up for the loss in another… that should be the motto……….. Better your strike rate and there is not much more one can do…
Experiment and believe me you will be a winner….. Also be prepared to sit out when the winds of change occur….. And BE CALM and COMPOSED at all times in all situations, after all it is paper money..
Abe
From:
Sent: Monday, January 11, 2010 10:21 PM
To:
Subject: Re: [sharetrading] Give your views on stop loss
If stop loss hit in a script , after sometimes the share price comes to low,
at that time can we reenter that script to recover the loss . Is this strategy
correct or not
@yahoogroups.
Sent: Mon, 11 January, 2010 8:46:28 PM
Subject: RE: [sharetrading] Give your views on Orchid Chemicals
OC is reversing with a buy signal on daily and an existing weekly signal; it has not tested a support at 182.6. Hence hold this as SL……………….
Enjoy holding the orchids
Abe
From: sharetrading@ yahoogroups. com [mailto:sharetradin g@yahoogroups. com] On Behalf Of Sun Fiji
Sent: Monday, January 11, 2010 6:33 PM
To: sharetrading@ yahoogroups. com
Subject: [sharetrading] Give your views on Orchid Chemicals
| Dear Group members, I am holding 300 shares of Orchid Chemicals@ Rs. 180/- . Can anybody give your views on this scrip. I heard that this company has sold one of its profit making drug. Is it true. Will it affect its growth? thanks in advance shanmugasundaram |
The INTERNET now has a personality. YOURS! See your Yahoo! Homepage.
The INTERNET now has a personality. YOURS! See your Yahoo! Homepage.
Happy Trading,
United we grow!!!
No comments:
Post a Comment