Stop loss selection

[srinivas.nukala]

Hello
Often i'm facing small dillema while trading
Say for example:
I buy a scrip at 100/- .
In general as most people say i'm keeping a SL of 3 or 4/-i.e SL at say 97/-.
But when i observe the price swings from 95-100 in a day and when i keep 97/- as SL ,it is gettig triggered very frequently.
SO MY DILLEMMA IS
"SHOULD I KEEP 97/- AS SL FOR THE SCRIP ON CLOSING BASIC"
OR
"SHOULD I KEEP 97/- AS SL FOR THE SCRIP ON INTRA DAY BASIC"
WHICH ONE IS BETTER?
Kindly assist me in this regard.

 

[NOMINDTR]

Hello
Often i'm facing small dillema while trading
Say for example:
I buy a scrip at 100/- .
In general as most people say i'm keeping a SL of 3 or 4/-i.e SL at say 97/-.
But when i observe the price swings from 95-100 in a day and when i keep 97/- as SL ,it is gettig triggered very frequently.
SO MY DILLEMMA IS
"SHOULD I KEEP 97/- AS SL FOR THE SCRIP ON CLOSING BASIC"
OR
"SHOULD I KEEP 97/- AS SL FOR THE SCRIP ON INTRA DAY BASIC"
WHICH ONE IS BETTER?
Kindly assist me in this regard.

You forgot to tell whether you do day trading or positional , though it is obvious that you are not doing day trade

 

[Capricorn]

Hello
Often i'm facing small dillema while trading
Say for example:
I buy a scrip at 100/- .
In general as most people say i'm keeping a SL of 3 or 4/-i.e SL at say 97/-.
But when i observe the price swings from 95-100 in a day and when i keep 97/- as SL ,it is gettig triggered very frequently.
SO MY DILLEMMA IS
"SHOULD I KEEP 97/- AS SL FOR THE SCRIP ON CLOSING BASIC"
OR
"SHOULD I KEEP 97/- AS SL FOR THE SCRIP ON INTRA DAY BASIC"
WHICH ONE IS BETTER?
Kindly assist me in this regard.

Why don't you try a volatility based stop. Simple percentage stops don't really have a meaning since yuo are not considering market conditions.

 

[srinivas.nukala]

you forgot to tell whether you do day trading or positional , though it is obvious that you are not doing day trade

thank you for going through my query
i do positional trading for short term.
Plz advice me

 

[srinivas.nukala]

Why don't you try a volatility based stop. Simple percentage stops don't really have a meaning since yuo are not considering market conditions.

THANK YOU VERY MUCK FOR YOUR REPLY
What is volatility based stop?
can you elaborate your advice.

 

[prasadam]

hi. srinivas.

http://www.investopedia.com/articles/trading/06/stopplacement.asp

Prasad.

 

[NOMINDTR]

thank you for going through my query
i do positional trading for short term.
Plz advice me

IMO, Closing discounts everything, for a positional trader.

You can always stop during the day when you see abnormal market conditions.

 

[Capricorn]

THANK YOU VERY MUCK FOR YOUR REPLY
What is volatility based stop?
can you elaborate your advice.

Here's an example.

http://www.fibonaccitrader.com/HELP/INDICATORS/ChandelierStop/chandelier_stop.htm

 

[manusp123]

hi...........................

 

[srinivas.nukala]

IMO, Closing discounts everything, for a positional trader.

You can always stop during the day when you see abnormal market conditions.

Can you kindly expand IMO