Janam Samjhha Karo, This is Trade Secreat.
At rising, Index break higher high's, at fall, lower lows i.e. day's low,previous day's low, 3-5-7 day's low (some time).
So, if trade goes against , one has to loose.......
If one has to loose then why wait upto previous day's low or 5 7 or 14day's low ?
If s/l is a question of life and death, why not at 6 th bid (one tick lower than 5th bid.)
But this way, brokerage will kill you, so find a broker who doesn't charge or open your own firm.
BTW, what about forgetting s/l...........?
RK
Let me ask the question more openly. As doumb gye want to ask what should be stoploss, near ma or 2% of capital invested ?
Suppose I buy nifty Fut at current rate 5063. Now last days low (on 4th Oct) will be 5011, 3 days ma 5028, 5days 4993 and 7 days 4962.
If I use 2% system the rate for stoploss comes to 4961 near to 7 ma.
Now the real problem that confuse me. The Original amount I invested is margian only and if I use 4962 as stoploss and if it hits the loss would be 5050 that is equal 20% of the original amount (used as margian) visa versa if I use 3 ma or last days low as s/l the loss amount will also be reduced.
What the seniors suggest ?
F