Help needed in deciding the stop losses in day trading

[stormer]

Hmmmm......


Thanks for that trader but i cant call you as lazy coz traders are not supposed to be lazy..I understand your point even though as a day trader keeping the stop loss where tha price may not hit will be really suciding by our selves especially for a scalper who will the trades in a day ranging from 10 to 100 and aim for a small profit and losses a small loosing trade fixed on the above situtaion may erode all his day profits with a single knock thats what is happening in my case.As i trader i have no pblm in short selling for the small profits and i have no problem in doing the same but the place where i am failing sticking to the trades with higher stop loss ranges and praying the god and hoping it to come back to the normal.......God knows how can i get rid of that.

But you have given me a little insight of psychological triggers like even numbers that always trigger it. i wll certainly give it a shot to find if it works.

Thanks for that.

 

[lazytrader]

I have edited the previous post to make it more clear. The idea was not to ask you to place a stop 20% away personally my stops are never more than 5% away. The basic idea was to illustrate the idea behind placing stop where the price can't reach it.

The best stop is one where the price stop just short of it and when triggered should move much past it.

 

[stormer]

Hi,


thanks for that reply and just now i have found by anlalyzing this month trade history as a trader i am getting almost 70 % strike rate i.e out of 100 i am getting 70 winning trades with less profits but i am loosing all my money and turning in to losses in the remaining 30 % for which the range is very huge.I was trying to formulate something to set the stops for scalping and i may post a reply on same tommorow please go through it and give your valuable insight.

Thanks

 

[ajshare108]

dear if you are a technical trader, than use 20 ema and 20 sma and put stop loss 4-5 tick below 20 sma. further when you find 20 ema and 20 sma kissing, square off your position.

 

[Smart_trade]

Hi,


thanks for that reply and just now i have found by anlalyzing this month trade history as a trader i am getting almost 70 % strike rate i.e out of 100 i am getting 70 winning trades with less profits but i am loosing all my money and turning in to losses in the remaining 30 % for which the range is very huge.I was trying to formulate something to set the stops for scalping and i may post a reply on same tommorow please go through it and give your valuable insight.

Thanks

You should risk a fixed % of your trading capital on every trade. So suppose you risk 1 % then on 7 successful trades you should make 7 % and on 3 loosers you should loose 3 % still giving you a net gain of 4 % . Here I am considering that your profits and losses are equal that is 1 %.( Ideally your winners should make 1.5 to 2 % and loosers should loose fixed 1 % ) You have to adjust your quantities you trade as per this risk and the distance of stoploss from your entry points.

You cannot let 30 % loosers take away the money made in 70 % winners...that is a sure recipie for problems in trading success.

Smart_trade

 

[ashwani chadha]

you should risk a fixed % of your trading capital on every trade. So suppose you risk 1 % then on 7 successful trades you should make 7 % and on 3 loosers you should loose 3 % still giving you a net gain of 4 % . Here i am considering that your profits and losses are equal that is 1 %.( ideally your winners should make 1.5 to 2 % and loosers should loose fixed 1 % ) you have to adjust your quantities you trade as per this risk and the distance of stoploss from your entry points.

You cannot let 30 % loosers take away the money made in 70 % winners...that is a sure recipie for problems in trading success.

Smart_trade

thanks for your gems

 

[NOMINDTR]

Hi,


thanks for that reply and just now i have found by anlalyzing this month trade history as a trader i am getting almost 70 % strike rate i.e out of 100 i am getting 70 winning trades with less profits but i am loosing all my money and turning in to losses in the remaining 30 % for which the range is very huge.I was trying to formulate something to set the stops for scalping and i may post a reply on same tommorow please go through it and give your valuable insight.

Thanks

Stormer,

Already our friends have said that in good detail.

Deciding a Stop is something dictated by combination of parameters like account size, position size, risk reward ratio of your trading system etc.,

But understand a basic thing that you don't getting money if your three trades wipe out what you earn in seven trades. Just adjust this. Try to fix a stop that could wipe out only profits of your three winning trades or something. The core is, you have to win more than you stopped.

Keep it simple, polish it with experience.

Take care

 

[pricespeculator]

Big gap openings on the Nifty have always confused me especially when my stoploss is bypassed completely with a large margin. I wanna know from the experts here how should we play large gaps especially if the gap is against the trend?

Should we bite the bullet & take the loss or stay put hoping that prior trend will resume?
Please guide me in this matter.
Regards.

 

[negidude26]

Hi,

folks

May be my excel sheet can help u decide your stoploss.

You can download and use it for free in below link.

http://www.traderji.com/risk-money-management/65832-simple-money-nd-trade-manager.html