Raj,
As we were discussing yesterday,1st of all on EOD with the help of few explorations few stocks are screened & on those stocks ,with another indicator "Lakshman Rekha" ,Entry is pre-planned & in intraday the price reaction at that Price level is keenly watched.When a confirmation is found in Intraday,maybe at Day's fag end or at 1st 30mins or at any time ,whenever Intraday confirmation is recvd. Entry above that & SL below that.This is just a Supp/Res point/ Price Inflexion point.Say for example 4082 in Nifty Fut was that point to-day ,however when in Intraday i was getting confirmation against my initial directional call instantly SL was drastically reduced to 2 points & a counter Risk of 1500/- (on each lot of 100),was taken.You may have observed in my pre-mkt post 4092 would have been my SL ,hence i was prepeared for a Loss of 10 points Rs 1000/- on 100's Lot ,i just booked 2/- & risked 15/- = 17/- instead of 10/-.A Double Qty SL would have also worked,but Resigning with 1700/- Loss put me mentally relaxed,rather a Double Qty ,giving whip-saw ,more distress.
Deliberately elaborated just to highlight ,IDENTIFICATION then ENTRY
lastly SL ( MONEY MGMT ) with COMFORTABLE strategy, also EQUALLY IMP "EXIT" (can be price wise / time wise ).Raj you are well versed in these things.
Asish
