If I m pretty sure about the direction of movement after taking position then at times, I risk my position which is in small profit but stay in to get more.
Case 1- If I m pretty sure with conviction, I would risk my profitable position swinging & allowing it even if it comes in loss temporarily.
Case 2- Normally, If my small profitable position starts swinging towards loss, instead of booking profits, I would keep SL at no profit no loss. So would exit manually. (This SL is mentally kept, other than Bracket/Cover order SL)
Case 3- Most of the time, I would be happy n content with 1% target but yes that 1% movement may increase to 2 -3% but u have to be sure otherwise book your profit n move on.
P.S : 1% movement equals to 20% profit/loss on your capital due to leverage of 20X.
Hello Tintin, please also add & tag @Srinivas in your future questions. I feel its not good to ignore mentioning him. He has been a consistent contributor on this forum answering queries & helping others with his posts.
I have noticed that you didn’t tag his name in your previous questions aswell. He may feel ignored n its not nice to do that. He does deserves a mention too.
Tintin, you should not keep anything personal with anyone on this forum. Yes at times we all do get into word wars n arguments. But we should stay as one family. Even I had arguments with srinivas in past but he’s a valuable contributor. We should not belittle someones effort indirectly.
Criticism n comments both should be welcome.
Disclosure - Srinivas or anyone, nobody told me to write this remark to u. I wrote it myself.
@Tintin. I don’t trade intraday. I only exit a positional trade intraday if it has reached close to my target. I tried it a while ago and realised I ended up working free for the broker and government. Now I specifically try to avoid intraday coz my trading style (contrarian) cant really work on intraday time frame.
Thank you @Spaceship for having me tagged:) Tintin sent me a message saying that he had missed tagging me and didn’t notice, but thank you.
Some valid exit points according to me:
If the market is trending, either upwards or downwards, then one can hold the position post 3pm and exit anytime after that. Maybe even partially exit till then and allow the last bit of quantity to run till the end.
If there is a decent amount of upmove/downmove during the trading day but the stock could retrace back from those levels after that, then one can exit when they see reversal patterns. Maybe even take a counter position after exiting to profit both ways. But you need to be watchful in this scenario.
If it’s a choppy/range-bound market, then a % target works well. For me, 0.6% to 1.2% is a probable target point.
One could also keep a monetary target for the day to avoid all other factors. Say your target is Rs.2000 with a valid trade qty, then you can also exit when this target is reached. And stop trading for the day unless you see another clear trade opportunity. If your target is not reaching easily, then you will have to rethink about when you want to exit the position.