Trading strategy doubt

#1

how much stoploss I should give for a target of 15 paise in a BO with 20000 quantity?

#2

Dear,

First mention the stock price!

#3

Thank u for your response sir.
Stock price 138.
And I want to buy 20000 shares for a target of 15 paise and now what stop-loss I have to mention and what should be the trailing stop loss in this case.

1 Like
#4

hello Venky111
that is around 0.1 percent target for the stock. To maintain good Risk to Reward Ratio, the stoploss should at least half of the target i.e. 7.5. But the tick size does not permit that. You will have to keep it 10 paise. But is does not make sense to keep 10 paise stoploss. You will hit the stoploss in the whipsaws. You will deplete your account in the long run.
Maintain a good Risk to Reward Ratio of atleast 1:2 and follow good risk management. Use proper Position Sizing technique.

#5

Thank u sir. Thank u so much for your response. I will follow as u said

#6

Why do you want to buy 20,000 Quantity in one hit? and target is very close.

#7

Stop loss is very important, and it depends on how much you are willing to risk. For any given trading activity, never risk more than you can actually afford to lose. Test your strategy on a demo account until you become sure before using it on a live account. Thats why demo accounts exist

#8

Sir what will happen if I buy 20000 at a time. I think absolutely there will not be any problem if I buy a huge quantity in a single shot.

#9

OK, thank you so much sir for your nice support.