Stop loss selection

[AW10]

CAN ANYONE TELL ME WHICH OF THE FOLLOWING WORKS BETTER WHILE SELECTING INITIAL STOP
1.INITIAL STOP=PURCHASE PRICE-2.5ATR
2.INITIAL STOP=PURCHASE PRICE-1.5ATR

IF I GO FOR FIRST ONE AND IF PRICE GO IN DOWNWARD DIRECTION I'LL MAKE A LOSS OF NEARLY 15% IN SINGLE TRADE.BUT I'M GIVING AMPLE TIME FOR STOCK TO RISE.
IF I GO FOR SECOND CASE I'M NOT GIVING ENOUGH TIME FOR STOCK TO RISE
Kindly advice me in this regard from ur experiences.
Thank you

Use the ATR of your timeframe. Say for NIFTY 15min chart, atr is 20 pts, then your stop will be 2.5 ATR below the highest point since your trade entry. That gives a risk of 50 points... You should not be using daily ATR on 15min chart.

Happy Trading

 

[imbharatk8]

Thks ,never left,just relinquished from Moderator responsibilty and due to my other interest has become less frequent HERE.

I am sad to read your following post in another forum.

"A forum with 200 members having more than 10 full time trader is Quality than a forum of 2 Lack members having 10 full time trader.
Why := Becoz rest 199910 will demand SHOW ME / FEED ME becoz they are peripherial guys either temporarily unemployed or loitering in between 2 station.If they are told that 'Data is Time Series' the Onus lands on you to explain otherwise you are Bad.
Let us be happy with more real traders & with budding traders very eager to Learn."

This is obviously a dig at members of this forum. Do you think it is proper?Is it done to prove to admin. of new forum that you belong to new place?If this forum is really populated by "peripheral guys","temporarily unemployed" or "loitering in between 2 stations" than what is the necessity to "feed them" even now?

 

[AW10]

Bharat, Can u plz share something worthwhile on the topic of STOPLOSS.
If you have personal opinion then please address directly on other forum / thru PM to Ashish da.

I appreciate his zeal to share his experience, his hardwork and the knowledge, thats too for FREE to the members here.

Happy Trading.

 

[ashutoshsatna]

dear first you look at the trend of the market then act ithe direction of the trend and to prevent loss put some stop loss,gradualy as the prise go up the stop loss also shift to higher

 

[imbharatk8]

I appreciate his zeal to share his experience, his hardwork and the knowledge, thats too for FREE to the members here.

Happy Trading.

After joining new forum his access of this forum was "blocked".I was the one who took up the matter with sup. moderator.Had I known that he will use such words,I would not have pleaded his case.Hence I raised it here so that when he revisits this forum he should know that he has hurt feelings of members of this forum.

Cut paste job from other sites can never be called "sharing the experience."Just read following post from that forum.

Quote:
Originally Posted by uasish
I can add few more example to your's becoz i am by profession a Trader since long and use Stop everyday in each trade.

Can't get a clue how it relates to the discussion.

Quote:
Can we devise some Stop ,scientifically other than these ATR/blah blah so all Camp follower agrees ?

Since when trading was a group sport? Stops are a inherent part of trading system, and I''l be rather surprised If two traders are using them exactly in the same way.
__________________
Above response was from his fellow boarder from that forum.I have not "doctored" itAfter reading this it will be clear that sharing experience and copy paste job are totally different and hardly involve "HARD WORK".

 

[tips.seeker]

500 bharati uthaaya aaj, stop kahan daaloon????

 

[Capricorn]

500 bharati uthaaya aaj, stop kahan daaloon????

TF kya hai??

 

[susmitanshu]

whenever i am going for an intraday trading in nifty future,how can i figure out the exact stop loss for it??have u any fixed formula for that....plz guide me..

 

[letscrackit]

do we really have stop loss in case of futures?

 

[susmitanshu]

whenever i am going for an intraday trading in nifty future,how can i figure out the exact stop loss for it??have u any fixed formula for that....plz guide me..