Please help. What should be trailing stop loss in BO for different stock’s?
Place a trailing stoploss of 1(minimum accepted value) for any stock in BO. In BO if you buy a stock at 100, target 110, SL 90 and TSL = 1, then for every 1 rupee upward movement of the stock from your buy price, the SL will move up by 1. So if the stock moves to 101, your SL will move to 91. If the stock moves to 105, SL will move to 95. Note that if the stock falls from 105 back to 100, your SL will still be at 95. Because TSL will only move your SL when the price moves in your favour.
@haribabu made a cool table for a visual understanding of TSL>
As shown, you can also place TSL of 2,3 etc… If TSL is 2, then only when a stock moves up by 2 will SL move up by 2. If TSL is 3, then only when a stock moves up by 3 will SL move up by 3. Ideally, you should always keep TSL as 1.
Should I keep 1rs trailing stop loss For high price stock’s like 1000 or 1200 ?
If you buy a stock at 1000 and keep SL at 990, now when the stock moves to 1001 and you want SL to move to 991 then place TSL = 1. Only when stock moves to 1002, you want SL to move to 992, place TSL = 2. Only when stock moves to 1003, you want SL to move to 993, then place TSL = 3.
Which TSL value suits your trading style?
A simple TSL value of 1 suits me. Actually i’ve stopped using TSL altogether. I don’t find the need of it anymore as I manage my stoplosses manually based on how the stock moves. Which is the best way to do it.
Thank you sir for reply.
Its Totally depends on Stock Volatility.
Some Stocks are Volatile some moves in a Narrow Range.
If your Stop-loss is very tight And Your target is Rs.2-3/- Then I would Suggest not to use Trailing Stop-loss.
If Stock is Volatile And You want to give some Space to swing the Price Movement Use Trailing Stop-loss.
I made many small profitable trades , but at one trade made big loss . Therefore I will keep SL in every trade in my life. For consistent profit SL is must. Thank you Brother for reply.
What most of the New Intraday Traders do.
Lets take an example.
Enter In Trade Buy Price At 100 and when Stock move in their Direction.
- Some exit very soon by taking Rs.1-2/- Profit But stock still goes up…
- Some wait for more profit and Exit at Rs.3-4/- Profit.
- Some fall into greed And never exit at Right time and stock again come back at their Buy Price even go below their Buy Price. They Book Loss.
Now, The Real Thing about Loss.
Say Bought Stock at Rs.100/- But it started Going Down it went Down Rs.2/- They wait in hope of Stock will come up, Stock went more down Rs.4/- Still Holding Position In hope that Stock will come up… Stock went 5/- Down Still Position is Open.
Now, Here Come the Reality.
If you are Ready to book Profit at Rs.2/- Why Not Book Loss at Rs.2/- and Move on. And Look for other opportunities.
A Smart Trader will easily cover this Rs.2/- loss in next Opportunities.
This is the Difference between Successful Trader and New Traders.
I just needed help in selecting the trailing stop loss value, i usually keep my TSL greater than my SL.
For Example : I Bought 100 Shares of XYZ stock at 940 and my SL was 3 and TSL was 4 is this the correct method? (It was a bracket order). In this case the stock moved to 945.55 and my TSL adjusted to 941.55 (I was able to protect my capital however i somewhere feel that if my TSL was 1 or 2 i would have made lil bit more profit)
I would really thankful if anyone could comment on it and provide your valuable advise.