Hi
just use a Weekly MACD chart.
macd cross above signal line,get ready to buy
macd cross below signal line,then get ready to sell
Alexander Elder refused to see dailychart first.
his focus was on looking at weekly chart first
take care
Know beforehand after how much loss you would quit a trade.
Trading begins with this step-1
How much loss could you take?
not clear?
just think
suppose in a month,if you can afford to loose a maximum of 10000 rupees.
there are 22 trading days in a month and you can based on above loose max of 10000/22=rs 455 per day
now if you trade two trades a day, then loss max per trade = 260
So just quit your stock trade if you loose Rs 260
iF YOU HAVE ENTRY AT 200 AND STOPLOSS AT 195,THEN RPS=5
NUMBER OF SHARES TO TRADE = 260/5 = 52
But there is a limiting catch called position size
Position size is 5% of your available capital.
say if you have just 60000 in hand, then you have licence only to safely use
3000 only
so, you can trade only with that many shares as you can buy with 3000, say
3000/200 = 15 shares
---------------------------------------
Now you may say "I trade futures"
RPS your entry and initial stoploss-- you need to fix them first
If RPS=5 THEN
A futures contract say has 125 units in it
max loss = rps*units per contract=625 LOSS PER CONTRACT
This is the minimum loss you must be ready
Suppose your futures contract has 400 units per lot,then
max loss per trade = 400*rps=2000
For option trades you need info on support and resistance first.
minimum 3 points or max 10 points can be your loss per unit depending on your max limit
take care
just use a Weekly MACD chart.
macd cross above signal line,get ready to buy
macd cross below signal line,then get ready to sell
Alexander Elder refused to see dailychart first.
his focus was on looking at weekly chart first
take care
Know beforehand after how much loss you would quit a trade.
Trading begins with this step-1
How much loss could you take?
not clear?
just think
suppose in a month,if you can afford to loose a maximum of 10000 rupees.
there are 22 trading days in a month and you can based on above loose max of 10000/22=rs 455 per day
now if you trade two trades a day, then loss max per trade = 260
So just quit your stock trade if you loose Rs 260
iF YOU HAVE ENTRY AT 200 AND STOPLOSS AT 195,THEN RPS=5
NUMBER OF SHARES TO TRADE = 260/5 = 52
But there is a limiting catch called position size
Position size is 5% of your available capital.
say if you have just 60000 in hand, then you have licence only to safely use
3000 only
so, you can trade only with that many shares as you can buy with 3000, say
3000/200 = 15 shares
---------------------------------------
Now you may say "I trade futures"
RPS your entry and initial stoploss-- you need to fix them first
If RPS=5 THEN
A futures contract say has 125 units in it
max loss = rps*units per contract=625 LOSS PER CONTRACT
This is the minimum loss you must be ready
Suppose your futures contract has 400 units per lot,then
max loss per trade = 400*rps=2000
For option trades you need info on support and resistance first.
minimum 3 points or max 10 points can be your loss per unit depending on your max limit
take care
