I am a small trader and been in the market since 3 years.
Initially i have faced some losses and took a break from trading for almost one year.
I have started trading again from Jun 2020 with a capital of 1 Lakh and now doing only swing trading in CNC segment.
I have one problem in keeping the SL particularly when the share moves in my direction.
For example, I have bought BAJFinance at 3492 and now the share is trading at 3580. My original SL was at 3395. and my target is around 3700. Now the stock is up 2.5% from my entry. I can’t see my profit to turn in to loss if the stock moves down. I have to find a way to keep SL to protect the profit where as we should also be in the move to catch max profit.
I need your suggestions in keeping the SL based on the movement of the share till the target is hit.
I would suggest using the Sell GTT – OCO (One Cancels Other) in your case. You will have to likely update it on a daily basis based on movement in your stock’s price. Refer to this support page
Sell GTT – OCO (One Cancels Other): In the example below, the current price of Infy is at 785. We are placing a target to sell Infy from the holdings at 800 with a trigger price of 800. We are also placing a stoploss order to sell at 700 with a trigger price of 700. If either of the target or stoploss price conditions are met, a selling CNC order is placed while cancelling the other condition. This sell order will get executed if you have the stock in your demat and if your limit sell order is filled on the exchange.
I want to know the best strategy to keep updating the SL. Like if the stock is trading 3% above my entry what will be the best price to keep the SL i.e. whether at the entry price or 2% below the CMP etc.
