A plunge in Indian Stock market

[sspms2002]

Trading without stop loss is a suicide in trading.There are various ways to put a stop loss and trail that stop.You can google about various types of stop losses.
Initial stop should be minimum high of the previous candle if shorting.
http://www.investopedia.com/articles/stocks/09/use-stop-loss.asp

I have marked up YesBank chart.Seniors/Experts may correct me.

5 min chart of Yesbank

Thanks a lot Amit for that Vivid explaination...I am still thinking over and trying to grasp the gist and see where it can suit my risk appetite..

Although i have held stocks against me for more than Rs 1000 loss..but i restraint from having a loss of more than 400-500 against me...and it in someway is stopping me from having me capture the jist of the move... (as in this case, i as of now couldnot afford to have a STOPLOSS of around 825...may be it is because of my Entry price which was not good enough..)

But i will explore it a bit more and analyse it..

 

[Sunnyraj]

Trading without stop loss is a suicide in trading.There are various ways to put a stop loss and trail that stop.You can google about various types of stop losses.
Initial stop should be minimum high of the previous candle if shorting.
http://www.investopedia.com/articles/stocks/09/use-stop-loss.asp

I have marked up YesBank chart.Seniors/Experts may correct me.

5 min chart of Yesbank

Wonderful explanation of Price action.

Amitji i would like to know what risk management techniques do you follow.
Ideally one should not risk more than 2% of capital on a single trade, right ?

 

[amitrandive]

Wonderful explanation of Price action.

Amitji i would like to know what risk management techniques do you follow.
Ideally one should not risk more than 2% of capital on a single trade, right ?

Sunnyraj

Everyone's risk appetite is different.Also the psychology is different for every trader.You cannot risk 2% everyday and hope to win.

If you have a 50,000 rs account , your risk becomes 1000 rs every day.
Below table will illustrate how much you need to recover if your account takes a hit.

My risk reward is different for every trade.We cannot have a fixed percentage of loss defined for every trade.

 

[sspms2002]

Today was another day when i gave all back to market after making some good money in morning..

The reason for that is i chose to play some risky stocks and also held them , although i was seeing them clearly going against me..

Anyways , i started with PFC and made Rs 900 with 300 shares..

Then i stopped playing for 2 hrs as i had some work..
When i started looking again..I saw YES BANK...it was near its low or yesterdays close..i shorted 200 at 812..it came till 808...and them shooted up..

I held it up to book a loss of around Rs 850..Strangely after loss i switch Stocks instead of concentrating on it more..

then i traded TVS motors..made around Rs 500 in that..also i booked GSK profit of around 1000...

But at the end, i entered JET Airways..and it gave me a good loss...though the reason for the loss is that i held it against me as i was doing some other work and could not see to it properly..

Stocks Traded: PFC , TVS Motors, JETAIRWAYS , YESBANK GSK etc..
P&L : Red 280 after commissions

Learning from today:
Play big volatile stocks with less Size to be comfortable..also protect your profits...
Protecting is as good as making profits.

 

[sspms2002]

Sunnyraj

Everyone's risk appetite is different.Also the psychology is different for every trader.You cannot risk 2% everyday and hope to win.

If you have a 50,000 rs account , your risk becomes 1000 rs every day.
Below table will illustrate how much you need to recover if your account takes a hit.

My risk reward is different for every trade.We cannot have a fixed percentage of loss defined for every trade.

Hi Amit..i agree that a recoup from loss of more than 2-5% is difficult on a day..as it hits both P&L and our psychology...

Also on same lines...some times a move start after the price moves against us..but we need to see how far its good to hold it...(if there is a reason)

 

[sspms2002]

Today was a day mixed with emotions at both the ends...I learnt many a things..
I started with ADANIENT at just the market open..I took 300 LONG and the stock went down during that minute ...It was deciding where to move..
I booked a loss of 1200...
As when it reached the low of that minute..i again took a SHORT 300 at that price..and the stock went up..and i again booked 1200 loss...I was caught on opposite ends on both the trades...I now think that stock was deciding where to move..and there was a tussle between Buyers and sellers and i was pigged in between them...total loss in first 5 min was 2400..

It set the tempo of the day as a day when i either will close red or it could be a recovery day but surely not a profitable day (as per my trading limits of now)


I then thought of taking positions very cautiously..i took position 200 LONG in Glen Mark..and held it for 7-8 rs profits..booked around 1600 in that and now my pending loss was around 800..

I then though of taking a position in a strong stock and let it ride for the day..so i took 300 LONG in TATA Motors...it showed little profits..and then went for a correction...As it started to show more loss..my initial thinking changed and i booked 800 loss in it...

I again was 1600 down...

Then i took a good position in Raymond after some time..i took 200 LONG..and it gave me a profit of around 1700+..

I was now in around 700 loss...

After some more deliberation i took a LONG position in AXIS Bank 200 shares..and i booked nearly 1100 in profit in that...

I was very happy that i was seeing myself green now...
I had to close now as i was feeling that im overworked and i might lose again..

Stocks Traded: ADANIENT , RAYMONDS, TATA MOTORS, AXISBANK etc
P&L : Green 404 after commissions

Lessons Learnt: Trade open only if you have a direction/reason set ..i traded as per momentum and also didn't had good stops in a stock that also gives a lot of slippage..

Watch the stocks before traded..don't just enter it..

 

[sspms2002]

Today seemed to be a tough day to trade as the market was choppy initially..and not moving...But later it did some downside movement..

I opened neagtive in SPARC with a loss of 600...Then i traded some small stocks and like TVS Motors , GAIL and came back flat...

Later i saw a good consolidation at low on AXIS BANK..i took a LONG of 200 shares and booked nearly 1400 in that...

Again gave away some of the profits as stocks were not moving..in ADANIENT , GLENMARK etc..


Stocks Traded: Many
P&L : Green 1009 after commissions

Lesson Learnt: Don't get married to a stock if you are making loss in them...for me these are ADANIENT , SPARC of now..

 

[sspms2002]

No Action today as i was travelling.
But it seemed Traders would have made a killing of Investors today..

 

[Sunnyraj]

No Action today as i was travelling.
But it seemed Traders would have made a killing of Investors today..

Ya, it was a very volatile day..yesterday and today as well..

 

[sspms2002]

Today was a historic day in indian history for the common man..It deserves a post from me...

Standing up to work for Public requires courage...and not many of us have it..Though many of us put a chimera of working with NGOs and that's the limit of our courage..

But i salute AAP and its Sanyojak Arvind Kejriwal to stand tall and stand upright after every fall and after all the Powerful people / party / Newschannel abusing their powers against common man...

This is really a historic day and i like many others would not forget the beginning of an era where a less powerful , less privileged , less sauve but more needy can see in eyes of the filthy rich and powerful politicians.

A question is a question whether it is asked by a family in slum or a Luteyen Bungalow and needs to be addressed..I at least see that to be heard going forward...

I guess there was a special power of conviction , Hard work and truth behind AAP which has trumped all who were against the plight of common man...

It seemed Stock market went down yesterday as it took into account that AAP will supply many a things at lower/free price and cut corruption..But i see that as an advantage for free economy where small and mid caps players would be given a chance to compete with the stalwarts who don't think much except how to get money out of poor man's pocket..

I see it as a rise of many small and mid cap companies and good for overall economy in medium to long term...


All My support to AAP vidhayaks to put up an example and pave way for a bright future of delhi in need... and keep the head upright but heart mellow and warm..

Jai Hind..