Did you notice the time?. Well if you are doing intraday scalping start from 10 AM to 3 PM. Technicals don’t make sense during market open and market close , atleast the first half hour. The volatility is very high. Technicals don’t work properly ,price whipsaws a lot. These times are good for people who trade discretionary , plenty of discretionary traders are there, usually they go down 1 min TF put large positions to make small pips, the quantity makes them profitable. Volatility is their friend here. Only thing I can’t figure out is how they are able to know which direction price would go based on a feel. But works for sure due to nice volatility!!
No, I take delivery trades. This too happened with a delivery position. The stock hit stop loss at 3.29.43 and right after a few seconds price went up. I checked the time.
Yes volatility is a friend, even for positional traders, for longer time frames. There are stocks which tend to react more, whose prices hit lows and highs multiple times in a year, these are good for positional trades, but just like intraday, sometimes the price goes down even lower after taking a trade, or the price takes a lot of time to reach high unlike the times it took to reach the same high.
I don’t know how day traders do this, maybe they have a very good idea as to how the index or a particular stock moves in those first or last few minutes, as they have good experience with them.
If you’re playing in these kind of stocks for the longer term, I would recommend keeping your stoploss outside the lower/upper circuit limits.
Just FYI, scalpers often have standing orders around the circuit limits, ie buy near lower circuit limit and short at upper circuit limit. They scan for stocks that frequently touch circuit limits and roll the dice. Having both sides covered, they don’t need to make a directional call. It’s even more profitable to do this with stocks that have futures.
Just looking at your stock today, it closed at 243.55 and had a LC at 183.35 and UC at 274.95. So I guess on that day it must have been something similar and you got stopped out.
I am a momentum trader with a predetermined target and stop loss. I am yet to learn trailing stop loss, so no long term bets, no positions for months. My focus is on finding momentum stocks which can hit my target or stop loss relatively quickly in a few weeks to a couple of months. This has happened for the first time in 3 months.
Come to think of it, I think I remember hitting UC before, although I never checked LC and UC while choosing a stock. I guess I don’t have to, because the chance of my pick hitting UC is very slim, same with LC too, and if UC happens I will convert it to a day position and book the profit, and if LC happens, I will sell and come out.
will suggest to put limit orders for SL insted of SL-M if you are doing positional trading as SL-M orders often triggered with such volatile movements,though personally me too apply SL-M order only but i’m an intraday trader and that too for nifty50 stocks only so never faced such issues.
I am doing a bit of over trading. I am taking delivery trades almost on a daily basis. My capital is limited, so is my knowledge, so until I become more knowledgeable, gain more experience, I need my capital back as quickly as possible, even if it gets reduced when a SL hits, so that I can take the next trade. Also, SLs are based on the weekly price movement of the stocks, so SLs don’t hit that quickly. This idea is also has discipline aspect, in addition to the need of capital.
And as I am trading much, I am also closing many trades at profit too, so SL concept is working fine I would say, except I have not settled on R:R yet.
it’s good you are aware about the flaws. can totally understand about limited capital constraints and that was the reason i have selected intraday as i will get my capital back by EOD
As SL is an integral feature of trading, this particular SL controlling measure, although does not make me happy, because I am losing money when it happens, I am happy after it happens because I was able to restrict loss to that price.
Small SL will hit quickly, the average of my SL I think is around 7% or so. If I quit before that, If i quit for 2-3%, which is common for stock to fall in a session or two, I will miss the up move if it happens. So I keep SLs based on weekly prices. This way, I will stay in the trade for weeks.
I am ready to get hit by spinners, I will bear the pain, and when I get the chance I will hit six
But I am not ready to get hit by West Indies fast bowlers, one hit and I am gone
Keep your stoploss wherever you find it most appropriate according to market and risk management, point here is that you should always accept whenever you got your first stoploss hit!
Never in the hope of greed and fear, create a second stoploss.
Well, whole market is run by 2 emotions: greed and fear, not only in stock market, but the whole marketing community is working cause of it (discounts are prime example’s )
Ha ye sahi he magar kuch traders kya karte he ki jese hi market niche jane lagta he aur unka stoploss hit hone vala hota he vo uske pahle hi apne stoploss ko aur bada dete he.
Kuch log mental stoploss rakhte he, aese me bhi vo sochte he ki market thoda aur niche jake upar chala jayega, is hope me vo stoploss ke hit hone se pahle hi stoploss ko aur bada kar dete he.
To is sense me ye kaha gya he ki “First stoploss is always an small one”.
I thought you have understood it but you are understanding it from different angle and I’m telling it from different angle . Ye isharo isharo me baat kehne par yahi hota he
I guess what you are saying works for intraday, jo neeche jaata hai, wo kabhi na kabhi upar bhi jaa sakta hai, isi liye SL ko badalna padta hai, taaki reversal miss na kare.
Delivery trade means I took a position, so if SL is hit means something has happened, many reasons, some reasons are related to the business, some reasons are plain price related, valuation is high, so price comes down.
