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a layman's approach to break out and break down |
casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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Post: #541  Posted: Wed Dec 01, 2010 9:22 am Post subject: |
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yes i guessed it, other wise why would have u hold it? 
now a days volatility is great and hindalco is also very volatile scrip, lets hope for the best!!!
if u get it around 201 u can also trail ur stop to see if it goes down again 
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newinvestor
White Belt
Joined: 16 Feb 2010
Posts: 120
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| Post: #542 Posted: Wed Dec 01, 2010 10:06 am Post subject: |
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| casper wrote: | yes i guessed it, other wise why would have u hold it?
now a days volatility is great and hindalco is also very volatile scrip, lets hope for the best!!!
if u get it around 201 u can also trail ur stop to see if it goes down again |
Hi Casper. Setting proper Stop losses has always been a problem with me also. I either set them at logical/technical levels ( which may be a bit far) or set them too close and this gets triggered too soon, and the stock then moves in my original direction.
It would be enlightening if you and others discuss their s/l strategies also
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sumesh_sol
Brown Belt
Joined: 06 Jun 2010
Posts: 2344
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| Post: #543 Posted: Wed Dec 01, 2010 10:27 am Post subject: INFOSYSTCH |
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INFOSYSTCH --60tf..
Looking weak... bELOW 3040 can touch 3000
-Sumesh
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #544 Posted: Wed Dec 01, 2010 10:55 am Post subject: |
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jet airways at, enter at bo, macd rsi buy mode target 850 aprx
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vrushabh123
White Belt
Joined: 18 Nov 2010
Posts: 39
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| Post: #545 Posted: Wed Dec 01, 2010 10:56 am Post subject: hii |
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| Track castrol in 30 min sym tri BO at 443..
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #546 Posted: Wed Dec 01, 2010 10:58 am Post subject: Re: hii |
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| vrushabh123 wrote: | | Track castrol in 30 min sym tri BO at 443.. |
nice one, but monthly pivot at 450 enter only after breaking the pivot
by the way, after breaking pivot it will look like an ascending triangle
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #547 Posted: Wed Dec 01, 2010 12:02 pm Post subject: |
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| newinvestor wrote: | | casper wrote: | yes i guessed it, other wise why would have u hold it?
now a days volatility is great and hindalco is also very volatile scrip, lets hope for the best!!!
if u get it around 201 u can also trail ur stop to see if it goes down again |
Hi Casper. Setting proper Stop losses has always been a problem with me also. I either set them at logical/technical levels ( which may be a bit far) or set them too close and this gets triggered too soon, and the stock then moves in my original direction.
It would be enlightening if you and others discuss their s/l strategies also |
once svrathi asked this and i replied the following. so im just pasting that same answer, if u need more plz tell me
calculating a stop loss is a tricky job,there is no hard and fast method.let us clear the basic situation a little bit elaborately,
why we need a stop loss??
i think the answer should be, after entering a trade, there are lot of chances, lot of unforeseen activities in the market, which can go against our trade, when we are using a stop loss, we are just limiting those unforeseen factors up to that level(stop loss level), and unless this level is breached, we will hope that the force which is going against our trade, will reverse in our favour.
that means, here we strongly believe two things:-
1. until the stop loss level is breached, there is possibilities, that the force may reverse in our favour
2.there will be less or absolutely no possibility for us if the level is breached by any means
now, let us incorporate these two points into a situation.
suppose, we are to short, then we will try to short at at resistance and will try to cover at a support,so here the resistance is the cause of the trade, and this resistance, until breached, will resist the price and price will go down and by any means, if this resistance is breached, then price will go upward and the resistance will act as a support to that up move, so in case of breaching this resistance, our trade becomes meaningless.
so this resistance level,with some cushion will act as our stop loss
in case of buy trade (long), we will buy at support and sell at resistance, and this support is the cause of buying ,hence it,with some cushion,should be our stop loss.
each time im using some cushion, because, due to intraday volatility, the support/resistance can be breached, but may not sustain, if u dont use a cushion with the original sup/resi level, then ur sl will be hit and then price will reverse
now our job will be to find out the points which has such characteristics, though it will vary case to case, but we can say some important ema, specially those who are fibonicci numbers such as 8/13/21/34/89 ema, upper and lower levels of bollinger band,in case of break out trading, the break out level(the upper trend line of the pattern) break down level (lower trend line of the pattern) can be considered as a potential sl.
in addition to that those who use pivot points, cam level,fib level, ichart levels can also use these levels as their stoploss
last but not least, ( i know, u may be thinking that casper is writing a novel here but plz bear with me )
in some cases, u may find that stop loss, calculated by any of the aforesaid methods, if get breached, will deliver a serious blow to ur economical health, so ur fingers might itch to bring it down to a comfortable level, BUT NEVER EVER DO THAT,IF U DO THIS, THEN THE SIGNIFICANT OF THE STOPLOSS WILL VANISH AND UR POSITION WILL BE VULNERABLE, IF U CANT AFFORD TO GET THAT STOP HIT, U JUST AVOID THAT TRADE AND FIND ANOTHER ONE, WHERE, U CAN DIGEST THE SL HIT,so instead of searching a trade by profit prospect, i feel its better to search a trade where risk component is low
thats all for now, if u want to know any thing else, plz feel free to ask
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vrushabh123
White Belt
Joined: 18 Nov 2010
Posts: 39
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| Post: #548 Posted: Wed Dec 01, 2010 12:08 pm Post subject: hii |
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| hi casper.. there is A.T in Mcleod russel in 60 min.. but yet to give BO..any stock to watch from ur side for intra..
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #549 Posted: Wed Dec 01, 2010 12:15 pm Post subject: |
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if we describe the stop loss in very simple term then the reason for entering the trade is our stop loss with some cushions
take the example of hindalco
breaking the neckline at 205was the reason to short and it opened in a gap down manner, gap down stocks have a tendency to go up, i mentioned it many a times so it touched the low of 195 and went on
and when 205 was broken the reason for trade was vanished. and if we trade without a valid reason we will get killed
u may find it ridiculous, but for me trading like playing with a venomous cobra, if i show a little carelessness it will snipe me
plz for god's sake dont think that i am critising vishal and protecting vishy
both are my brother and i cant be partial to any body and i know like vishal, vishy is also short and holding it, but i am writting of what we can learn from this situation, we need to learn from every incident, be it positive be it negetive
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #550 Posted: Wed Dec 01, 2010 12:18 pm Post subject: Re: hii |
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| vrushabh123 wrote: | | hi casper.. there is A.T in Mcleod russel in 60 min.. but yet to give BO..any stock to watch from ur side for intra.. |
again we have monthly pivot and weekly pivot at that level
when u check, check pivot points also
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casper
Green Belt
Joined: 02 Oct 2010
Posts: 1315
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| Post: #551 Posted: Wed Dec 01, 2010 12:36 pm Post subject: |
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ashoke leyland. at . macd buy, rsi consolidating already above the upper tl, but 89 ema is resisting the up move, i think it can breach 89 ema too. we can enter here with a target of 76 aprx
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anand1234
Yellow Belt
Joined: 17 Jul 2010
Posts: 830
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| Post: #552 Posted: Wed Dec 01, 2010 12:37 pm Post subject: |
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hi.........casper
I am asking u out of the track..........can u tell me about the areydrg(bse).........I purchased @54 before 1 year.........now it is moving slowley..........can u tell me how long I shd hold it for the tgt........pls guide me........
thanks
anand
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sumesh_sol
Brown Belt
Joined: 06 Jun 2010
Posts: 2344
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| Post: #553 Posted: Wed Dec 01, 2010 12:37 pm Post subject: LUPIN |
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LUPIN
Below 500 it can reach 502/500
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anand1234
Yellow Belt
Joined: 17 Jul 2010
Posts: 830
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| Post: #554 Posted: Wed Dec 01, 2010 12:50 pm Post subject: |
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hi..........sumesh........
lupin below 500..........502/500........means??
I did not understand .....pls clarify
thanks
anand
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sumesh_sol
Brown Belt
Joined: 06 Jun 2010
Posts: 2344
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| Post: #555 Posted: Wed Dec 01, 2010 12:53 pm Post subject: |
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| anand1234 wrote: | hi..........sumesh........
lupin below 500..........502/500........means??
I did not understand .....pls clarify
thanks
anand |
Sorry, I meant below 510...
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