Bracket order or cover order issues

Trading
1

**Hi, **
When i enter into a position while trading any stock, by using bracket order or cover order, i found very scary the stock price will reverse its direction and come back to my stop-loss area and eats away, if this is the case i don’t understand how other guys are working in trading, how they make money out off it. when ever if i use normal order or buying at any price with out stop loss order, i am able to get profit, but if i use BO or CO it reverse back and eats away. Is it a scam or algorithmic robot trading computers knows our Stop loss or my stock broker or exchange or any hedge companies or any foreign banks or any dons behind this scam. Is it only happens to me or my trading itself is false strategy.

I am feeling that most of all experiencing this scenario, don’t we.

1 Like
2

choose your target and stop-loss wisely. never set high target and set stop loss as maximum of your risk. Also avoid placing trade during market starting hours it will be more volatile & so market will move up or down without clear direction.

3

I have faced this problem using bracket orders & cover order.Most of the time my position in BO/CO have always resulted in stop loss getting triggered

4

Try placing your stop loss at the optimum point. You can arrive at this through trial & error or gradually bring it closer to the LTP. I overcame a similar problem by adopting this method.Don’t worry no mafia or dons.

5

My suggestion do paper trade before placing BO order to test

6

What was your entry price and what was your stoploss price?

7

@munibabu_BODAGALA, which stock was this? I too faced a similar issue yesterday. I traded on Central Bank and that is comparatively an illiquid stock. I guess this problem can be avoided by trading in highly liquid stock.

Fellow traders, let us have your opinions please.

8

As your are earning profits when you are not placing any SLs - welcome to the club… .:fireworks::sparkler::fireworks::sparkler:
Don’t trade with CO, BO ie don’t trade with over-leverage.
Let me explain with my example.
I started with 1 lakh margin… Nifty was at 9500ish levels.
CO/BO allowed me to take 10 lots with high leverage. Now once I bought 750 nifty each 1 rs change in price brought me ₹750 directly. I was in heavens.
But I was not ready to lose even 2000 Rs. Yes, loosing even Rs 2000 would deeply burden me and put me in depression. But in this way I lost nearly 20K of my margin. Because to restrict my loss to 2000 only I needed to put SL of just ₹3, which got hit instantly, always!!!

Then I started just taking 1 lot of Nifty (75)… gaining 400,500 Rs & losing 1000, 1500 Rs. only. I lost another 10k.
Then I started keeping my in profit positions and exiting my losing positions (both after deep analysis only)

Now I trade in 4 lots and earn 4k -5k daily while losing 1-2 k in between…
I use CO/BO but I put MAX SL so that if that SL hit my whole account will wipe out. But my actual SL is candle end

2 Likes
9

I know how markets swings triggering the stop losses & later returning back to position where u would have made profits if you were still in the trade. But your SL already got HIT.

And yes, leverage is a 2 side sword.

1 Like
10

That’s what I always say:
Actually I have give english language a good proverb:
You never know when it will form a hammer

11

Hi,

Thanks for giving me reply,

I have been doing intraday on mcx commodity i.e Aluminum mega lot, specially, Which is better than any other domain,

because it moves slowly and we can wisely take position. rest of the equity market is volatail, specially Wockpharma, BaskarInds etc

12

In this scenario, better do hedging, i can provide a best video in you tube please see, back test or do a small trade and reply me. Link: https://www.youtube.com/watch?v=FyAeujRwLxM