How to decide Target and StopLoss?

Discussion in 'Beginners Guide' started by vedvyas, Dec 4, 2009.

  1. vedvyas

    vedvyas New Member

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    Dear seniors,
    I am a customer of Sharekhan.I see that they daily give tips for buy or sell with a target price and stop loss.
    I just want to know that how do they decide the target price and stoploss.what is the logic or technique behind this.

    Because when i select a stock after technical analysis i dont have a a target and SL. If i exit a stock after 2% profit i see that stock has reached +5%. Now on other day when a stock is at
    +2% and i wait and hold the stock for more high then i see that now it is going downward.
    so i jaust want to know that how to decide a target and stop loss.
    please throw some light on it.
    thanking in advance.
     
  2. sudoku1

    sudoku1 Well-Known Member

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    stops & targets r arrived with the hepl of TA by using pivots, swings; moving averages 2 name a few:)
     
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  3. mitraexport

    mitraexport New Member

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    dear fried use this formula take previous day high low close

    pivot point = daily high +dailylow+daily close divideby 3

    Then
    support 1 = p-((2*p)-high resistantn 1 = p+((2*p)-LOw))
    support 2 = p-(high-low) resistant 2 = p+(high+low)

    this fourmule used for next day if you use previous day data but it does not wrok for ohter days.
    if you take last week highest high and lowest low and week close it wil work for next week.
    thry with this fourmule and resistant is nothing but a target.

    enjoy

    ajit
     
  4. Shah Jahan

    Shah Jahan New Member

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    Thank you Ajit for your response. Since I am a newcomer, my question might sound n00bish, but.... where can we find previous day's high/low?

    I know that previous day's closing and today's opening are available. But where is the data for PREVIOUS day's high/lows?
     
  5. bunny

    bunny Well-Known Member

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    Previous day's basic data is available on websites of exchanges.

    http://www.nseindia.com/content/equities/eq_scriphistdata.htm
     
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  6. bunny

    bunny Well-Known Member

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    abdunaz likes this.

  7. gopal sethi

    gopal sethi New Member

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    Hi,

    Could you please provide the correct formula ....

    It seems the formula does not contains the end bracket.

    pivot point = daily high +dailylow+daily close divideby 3


    support 1 = p-((2*p)-high resistantn 1 = p+((2*p)-LOw))
    support 2 = p-(high-low) resistant 2 = p+(high+low)




    Regards,

    Gopal
     
  8. Jhunjhunwala

    Jhunjhunwala New Member

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    I use maths to get sell buy price given by firend. take price - low or high and add or minus with previous difference and you can get the price to take win.
     
  9. pawan84_garg

    pawan84_garg Member

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    there r lot of formula but i think you try this
    trade when stock price cross ATP (average trade price) if stock price go up from ATP than you buy and your sl below ATP .5% .same in sale side
     
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  10. SREENAN

    SREENAN Member

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    Dear Pawan
    How due you get or calculate ATP......what is the formula
    SREENAN
     
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