Zerodha....
- Thread starter bharath.mang
- Start date
- Tags bakwaas now cheapest brokerage nest nest plus new broker zerodha zerodha trader
- Status
The disadvantage of Stops Loss LIMIT order is that its NOT GUARANTEED it WILL get traded though it WILL get executed based on the Trigger price ...!!!
Assume today i bought 1 lot of NIFTY @ 4935.00 and i place a SL-L order ...Trigger price @ 4930 & Limit Sell price @ 4925.25 [ Decimal bcoz of screen shot example ]...
Now when Price reaches 4930 My SL-L is triggered and my order is placed at 4925.25 ..., As you can see in the screen print there is only ONE order ( BUY )for 4925.25 .., So any other person who placed SL-L at the same price BEFORE mine will get traded [ NOT necessary ONE order in this case as far as Number of lots BUY is less than SELL at 4925.25 and unfortunately if my order happens to be lower in the Queue ..., My SL-L will ONLY get triggered But NO GUARANTEE it WILL get traded ....]
And Once Price slips below 4925.25 My Order will Simply sit there ....
Just My 2 Paisa ....
Assume today i bought 1 lot of NIFTY @ 4935.00 and i place a SL-L order ...Trigger price @ 4930 & Limit Sell price @ 4925.25 [ Decimal bcoz of screen shot example ]...
Now when Price reaches 4930 My SL-L is triggered and my order is placed at 4925.25 ..., As you can see in the screen print there is only ONE order ( BUY )for 4925.25 .., So any other person who placed SL-L at the same price BEFORE mine will get traded [ NOT necessary ONE order in this case as far as Number of lots BUY is less than SELL at 4925.25 and unfortunately if my order happens to be lower in the Queue ..., My SL-L will ONLY get triggered But NO GUARANTEE it WILL get traded ....]
And Once Price slips below 4925.25 My Order will Simply sit there ....
Just My 2 Paisa ....
One request... Don't put stop loss-market order in your system... Rather keep 5 points (if trading in Nifty futures) difference between your stop-loss trigger and limit orders. The market is too shallow these days and SL-M order may hit you so badly that you may never be able to trade again...
One recent example... On 20th April, 2012 market was comfortably trading above 5300... many kept s/l at 5300... around 2:20 p.m. market zoomed down to 5000 low (in 5-10 ticks)... but ended the day at 5304... think about this... your sl-m could give you loss of Rs. 10,000/lot in extreme case.... If trading with 5 lots, it's Rs. 50,000 loss... If trading with 10 lots, the loss will wipe out the whole trading capital of some of the small traders among us...
One recent example... On 20th April, 2012 market was comfortably trading above 5300... many kept s/l at 5300... around 2:20 p.m. market zoomed down to 5000 low (in 5-10 ticks)... but ended the day at 5304... think about this... your sl-m could give you loss of Rs. 10,000/lot in extreme case.... If trading with 5 lots, it's Rs. 50,000 loss... If trading with 10 lots, the loss will wipe out the whole trading capital of some of the small traders among us...
Not having a stop loss is what kills an amateur and having a stop loss is what kills an active day trader.. ...
Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
But is Stop loss required?? It is mandatory, but as an insurance rather than anything else.. During all my trading, the biggest problem spots where the days there was some news released, or some bomb blast or some result.. These are the few times when you need the stop loss in the system, because big moves can eat away profits made over a year in 5 mins of day trading... This again I am speaking as a pure day trader...
... Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
But is Stop loss required?? It is mandatory, but as an insurance rather than anything else.. During all my trading, the biggest problem spots where the days there was some news released, or some bomb blast or some result.. These are the few times when you need the stop loss in the system, because big moves can eat away profits made over a year in 5 mins of day trading... This again I am speaking as a pure day trader...
Not having a stop loss is what kills an amateur and having a stop loss is what kills an active day trader.. ...
Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
But is Stop loss required?? It is mandatory, but as an insurance rather than anything else.. During all my trading, the biggest problem spots where the days there was some news released, or some bomb blast or some result.. These are the few times when you need the stop loss in the system, because big moves can eat away profits made over a year in 5 mins of day trading... This again I am speaking as a pure day trader...
... Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
But is Stop loss required?? It is mandatory, but as an insurance rather than anything else.. During all my trading, the biggest problem spots where the days there was some news released, or some bomb blast or some result.. These are the few times when you need the stop loss in the system, because big moves can eat away profits made over a year in 5 mins of day trading... This again I am speaking as a pure day trader...
.. The two weeks are nearly up for Nest Plus to have NSE, NFO, CDS etc.. along with MCX.
The disadvantage of Stops Loss LIMIT order is that its NOT GUARANTEED it WILL get traded though it WILL get executed based on the Trigger price ...!!!
Assume today i bought 1 lot of NIFTY @ 4935.00 and i place a SL-L order ...Trigger price @ 4930 & Limit Sell price @ 4925.25 [ Decimal bcoz of screen shot example ]...
Now when Price reaches 4930 My SL-L is triggered and my order is placed at 4925.25 ..., As you can see in the screen print there is only ONE order ( BUY )for 4925.25 .., So any other person who placed SL-L at the same price BEFORE mine will get traded [ NOT necessary ONE order in this case as far as Number of lots BUY is less than SELL at 4925.25 and unfortunately if my order happens to be lower in the Queue ..., My SL-L will ONLY get triggered But NO GUARANTEE it WILL get traded ....]
And Once Price slips below 4925.25 My Order will Simply sit there ....
Just My 2 Paisa ....
Assume today i bought 1 lot of NIFTY @ 4935.00 and i place a SL-L order ...Trigger price @ 4930 & Limit Sell price @ 4925.25 [ Decimal bcoz of screen shot example ]...
Now when Price reaches 4930 My SL-L is triggered and my order is placed at 4925.25 ..., As you can see in the screen print there is only ONE order ( BUY )for 4925.25 .., So any other person who placed SL-L at the same price BEFORE mine will get traded [ NOT necessary ONE order in this case as far as Number of lots BUY is less than SELL at 4925.25 and unfortunately if my order happens to be lower in the Queue ..., My SL-L will ONLY get triggered But NO GUARANTEE it WILL get traded ....]
And Once Price slips below 4925.25 My Order will Simply sit there ....
Just My 2 Paisa ....
Though the context of my reply was different (it was to address some undesirable adverse situations), trying to reply to your 2 cent (sorry, paisa) thing... the moment your s/l gets triggered, NOW gives you a signal either written or audio or both... Then it depends on an active trader to change the limit price or keep it as it was... If I keep s/l as 5 points, I generally change my orders when the s/l gets triggered (if possible)...
Not having a stop loss is what kills an amateur and having a stop loss is what kills an active day trader.. ...
Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
... Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
well said. Daytrader like me is on lookout for 15-20 NF points.
I will be happy if u can advice me on order. No doubt SL-M order saves u on those critical instances. But generally traders prefer SL-L coz of fixed limit price.
From your experince - can you tell barring those few critical instances-
If i put SL-M order, on normal ocassions, generally what's the range within which execution price lies from trigger.
Not having a stop loss is what kills an amateur and having a stop loss is what kills an active day trader.. ...
Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
... ... ...
... Personally I think, a day trader doesn't need a stop loss order of 5 to 10 to 20 points.. These stop losses over a period of time will burn your pocket.. For a day trader there are only 2 things to do , if the trade is right sit or wrong exit.. Don't understand the concept of having 5 , 10 or 20 point stops.. It will chop you once too many times..
... ... ...
29th March, 2012 was an expiry when market closed below 5200 (5180 NF to be precise). Good amount of short positions were in the system as market closed below 5200 psychological level at expiry. The very next day market gaped up 55-60 points. The bears were trapped and the market continued moving up... Nifty futures comfortably traded above 5300 and never came down on that day below 5300 once crossed (remember Casper... you told that market is afraid of crossing 5300 and will not... somebody replied that if it has tried so many times & it will)... so day traders who have taken position at opening of the market should have comfortably waited to book profit at day's end (adds on initial position would be malai maarke :lol
... Alas! it was not to be... MNF traded below the LOWER LIMIT (yes, you read it right... It was around 47-4800... ) on that day for few sec... so some unfortunate people keeping s/l-m @ 5300 just lost their profitable positions as well as booked a good chunk of loss due to vagaries of the market as well as the foolish decision-making of keeping s/l-m... Questions were raised... Zerodha and Sumo said it's part & parcel of trading... Later on Zerodha clarified that NSE reversed the trade happened at the lowest price (yeah... the authority cleared the sh**
Even EOD charts do not have those price points)... BTW, MNF closed at 5322 on that day... The above-mentioned 2 examples gave me enough insights to avoid keeping S/L-M orders in the system and giving the market signed blank cheque to rob me at will...
Trading is like having eggs, some like it scrambled, some boiled, some as an omelette or other such ways.. ..
You need to do what you like and are comfortable doing.. Yes it helps to take insights from others, but at the end of the day to be profitable, you have to do what feels right to you..
If you are a nifty trader you don't need to worry about SL-L or SL-M, as long as you are not a trader who is trading quantities more than 50 lots at a time, there is hardly any impact because of SL-L or SL-M. So less than 50lots, the impact will be less than 1 point most of the times...
.. You need to do what you like and are comfortable doing.. Yes it helps to take insights from others, but at the end of the day to be profitable, you have to do what feels right to you..
If you are a nifty trader you don't need to worry about SL-L or SL-M, as long as you are not a trader who is trading quantities more than 50 lots at a time, there is hardly any impact because of SL-L or SL-M. So less than 50lots, the impact will be less than 1 point most of the times...
- Status
