New Intermed Uptrend!!
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Saint,
I beleieve this is a off repeated question(s) again and again. I just want to know,
1. How do you go about putting trailing Stop Losses.
2. When you really decide to take 50% profits from the Trade.
3. Is Stop Loss should be based on Daily Charts or Weekly, if both styles can be used what are the considerations?
Also, If you can add more information on this I shall be greateful.
Please educate me on this subject. Will be happy to learn.
Satya
I beleieve this is a off repeated question(s) again and again. I just want to know,
1. How do you go about putting trailing Stop Losses.
2. When you really decide to take 50% profits from the Trade.
3. Is Stop Loss should be based on Daily Charts or Weekly, if both styles can be used what are the considerations?
Also, If you can add more information on this I shall be greateful.
Please educate me on this subject. Will be happy to learn.
Satya
Saint,
I shall wait for your reply. As everyone knows its much harder to get out of a trade rather than entering it.
A small quote from Elder's book. he says "People get attached to the trade they own". this simple mistake makes them not to exit and accumulate lossess.
So, i am not looking for any Complex or Sophisticated method, just trying to collect a simple method. Its like talking in own mother tongue rather than trying to talk in a foriegn tongue or accent.
sometimes, I feel it makes sense to keep things simple.
Satya
I shall wait for your reply. As everyone knows its much harder to get out of a trade rather than entering it.
A small quote from Elder's book. he says "People get attached to the trade they own". this simple mistake makes them not to exit and accumulate lossess.
So, i am not looking for any Complex or Sophisticated method, just trying to collect a simple method. Its like talking in own mother tongue rather than trying to talk in a foriegn tongue or accent.
sometimes, I feel it makes sense to keep things simple.
Satya
Hi Satya,
Judging from your past posts,you are obviously not a beginner,........but I hope you wouldn't mind if I addressed this query as if to a beginner.
Whenever we enter a trade,a stop loss is a must.A stop loss is a predetermined point where we cut our losses.As traders,we are in this business to make profits.And we make profits over a long term by cutting our losses short and letting our profits ride.
The word predetermined is important.......a stop loss is put in before the trade is put in motion.
Many are the ways to determine that point where we keep our stop losses.....I can only share what I do.Let us take an example,say SAREGAMA.From July 19th top,we've had a series of lower pivot highs and lows but with a milder gradient characteristic of a pullback.The support area of 166 held and then it was slish slosh for a while.Around Dec 1st,we got our first higher pivot low and confirmed the following days.We have an entry of 192.The previous pivot low is 166(give it a Rs2 space,so we now have a stop loss of 164).
Now we wait.......we do nothing but to trail stop upwards.Every week we raise our stop loss to the low of 2 bars ago.Meaning,if we are now in Week 3,we raise our stop loss to the low of Week 1.In SAREGAMA,we are yet to be taken out.So,in SAREGAMA,we are now at 237,with our stop at RS2-3 below 210.So on so forth.
Another method is to keep the stop loss at that pivot low,and then let the stk rally and fall to make a higher pivot low,and then to raise the stop loss to this new higher level.This gives us better gains,but one needs a bit of a stomach for it.
The whole idea is to squeeze as much as possible from the run.......
As for Question 3,I usually trade off the weekly charts,but I may fine tune an entry using the daily charts.But my stops are from the weekly charts.
And as for Que 2,I usually take half when my target is exceeded and we are at an area of stiff resistance,as was the case of BomDye.........otherwise,I 'd just let it run.
Another way would be to allow the pullback,it makes a higher pivot low.Once it goes to new highs,we raise the stop loss to just below that higher pivot low......this requires some stomach,but you get to reap bigger gains as well.
Few more reads : http://www.traderji.com/421-post3.html
http://www.traderji.com/14460-post1.html
If anything else comes to mind,shall keep you posted.Do get back to me if any clarification is required on anything.
Happy Trading!
Saint
Judging from your past posts,you are obviously not a beginner,........but I hope you wouldn't mind if I addressed this query as if to a beginner.
Whenever we enter a trade,a stop loss is a must.A stop loss is a predetermined point where we cut our losses.As traders,we are in this business to make profits.And we make profits over a long term by cutting our losses short and letting our profits ride.
The word predetermined is important.......a stop loss is put in before the trade is put in motion.
Many are the ways to determine that point where we keep our stop losses.....I can only share what I do.Let us take an example,say SAREGAMA.From July 19th top,we've had a series of lower pivot highs and lows but with a milder gradient characteristic of a pullback.The support area of 166 held and then it was slish slosh for a while.Around Dec 1st,we got our first higher pivot low and confirmed the following days.We have an entry of 192.The previous pivot low is 166(give it a Rs2 space,so we now have a stop loss of 164).
Now we wait.......we do nothing but to trail stop upwards.Every week we raise our stop loss to the low of 2 bars ago.Meaning,if we are now in Week 3,we raise our stop loss to the low of Week 1.In SAREGAMA,we are yet to be taken out.So,in SAREGAMA,we are now at 237,with our stop at RS2-3 below 210.So on so forth.
Another method is to keep the stop loss at that pivot low,and then let the stk rally and fall to make a higher pivot low,and then to raise the stop loss to this new higher level.This gives us better gains,but one needs a bit of a stomach for it.
The whole idea is to squeeze as much as possible from the run.......
As for Question 3,I usually trade off the weekly charts,but I may fine tune an entry using the daily charts.But my stops are from the weekly charts.
And as for Que 2,I usually take half when my target is exceeded and we are at an area of stiff resistance,as was the case of BomDye.........otherwise,I 'd just let it run.
Another way would be to allow the pullback,it makes a higher pivot low.Once it goes to new highs,we raise the stop loss to just below that higher pivot low......this requires some stomach,but you get to reap bigger gains as well.
Few more reads : http://www.traderji.com/421-post3.html
http://www.traderji.com/14460-post1.html
If anything else comes to mind,shall keep you posted.Do get back to me if any clarification is required on anything.
Happy Trading!
Saint
Hello saint ,
Thanks for sharing ur way of trailing S.L.----To ur such a well sketched scenerio ploting,--I would like to add one more thing---knowing the trading ranges of a particular scrip---in which u r going to trade is a very useful thing----if one can pick the scrips in the correct points(though there always remains a probablity of a more downfall than the preassigned known point)-----the trading profits ---though limited ---can aggregate to a substential amount in a short time----
Regards,
joy_mitali
Thanks for sharing ur way of trailing S.L.----To ur such a well sketched scenerio ploting,--I would like to add one more thing---knowing the trading ranges of a particular scrip---in which u r going to trade is a very useful thing----if one can pick the scrips in the correct points(though there always remains a probablity of a more downfall than the preassigned known point)-----the trading profits ---though limited ---can aggregate to a substential amount in a short time----
Regards,
joy_mitali
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