moving stop loss-ICICIdirect

[Nava]

that means some shares will remain un-protected against ugly market moves

Hi Rishi,

I think all good liquid stocks have BTST facility.
Finally What method do you follow to protect your shares..?
Do you place stoploss sell order everyday..?

Regards,
Nava,

 

[vasa1]

Re. stop-losses, are they fool-proof?

Does anyone know of instances where the price has fallen below your stop loss limit price and you are still stuck with your shares?

I imagine this can happen if the bid-ask spread is wide, and another seller undercuts your stop loss limit. Can this happen?

Also, in a similar situation, suppose you have a large number of shares to sell, can there be a possibility of the sell order being partially executed?

 

[hbkhrushikesh]

Hi Rishi,

I think all good liquid stocks have BTST facility.
Finally What method do you follow to protect your shares..?
Do you place stoploss sell order everyday..?

Regards,
Nava,

Yes I do! when the system allows me to ...... thats why i was a bit nervous abt not being able to place a stop-loss for the 1st 2 to 3 days after i buy the stock.

My normal routine is...... i keep tracking every stock that I have filtered when it is moving downward. ( i normally trade only in AAA stocks i.e. companies which are well establised). When i think that the downward trend changes to upward trend, I wait for a couple of days of confirmation, then based on the upward trend confirmation, i see the previous support and resistances. If the risk to reward ratio is better then 1:3 I buy with a stop loss of the previous support to start with ( and i place the SLTP and limit order at 8.30 every day!) as and when the trade moves in my direction, i trail the profits. with first target break even and then 5% trail. Sell when ever the stop loss is hit. Thats my exit strategy.

Have been a bit lucky ( or have been doin good analysis ) but havent made a single loss making transaction since last 4 months.

There are so many things to be learnt....... I am glad that this forum has helped me understand stop-loss and most of the things associated with it.

Regards,
Rishi

 

[Nava]

My normal routine is...... i keep tracking every stock that I have filtered when it is moving downward. ( i normally trade only in AAA stocks i.e. companies which are well establised). When i think that the downward trend changes to upward trend, I wait for a couple of days of confirmation, then based on the upward trend confirmation, i see the previous support and resistances. If the risk to reward ratio is better then 1:3 I buy with a stop loss of the previous support to start with ( and i place the SLTP and limit order at 8.30 every day!) as and when the trade moves in my direction, i trail the profits. with first target break even and then 5% trail. Sell when ever the stop loss is hit. Thats my exit strategy.

Have been a bit lucky ( or have been doin good analysis ) but havent made a single loss making transaction since last 4 months.

There are so many things to be learnt....... I am glad that this forum has helped me understand stop-loss and most of the things associated with it.

Regards,
Rishi

Hi Rishi,

Thank you very much for sharing your strategy. I am impressed by the way u are doing it with more sucess :clapping:. Me too learning many things from this wonderful forum. Right now I do't have any specific systems/strategy. I am trying to build it.

Can you explain, How do you screen the stock which are in downtrend..?
PS: I do't have any software like Amibroker, Metastock..

Regards,
Nava,

 

[hbkhrushikesh]

Hi Rishi,

Thank you very much for sharing your strategy. I am impressed by the way u are doing it with more sucess :clapping:. Me too learning many things from this wonderful forum. Right now I do't have any specific systems/strategy. I am trying to build it.

Can you explain, How do you screen the stock which are in downtrend..?
PS: I do't have any software like Amibroker, Metastock..

Regards,
Nava,

I currently dont use any indicator ( though I am training my self to use the Moving avgs and simple Volume based indicators)

I use sprice action to decide uptrend/downtrend i.e. I draw a trend line on the chart and see what the trend is like.

As far as screening goes, as I had said earlier, i am currently only stickin to the AAA type of stocks as I think my knowledge about fundamental analysis and detailed technical analysis is in its infancy to say the least. Hence, rite now I stick to 2-3 of the best known companies in each sector. ( Banking: SBI BOI ICICI and likewise) As these companies have a proven track record and any changes in fundamentals are well accounted for in the press, hence i presume the price action is the interpretation of fundamentals. Hence, just try to analyse the current trend and based on risk:return ration, try and ride the trend.

As I had said earlier, I cannot thank this forum and its members more for all the help that is so selflessly offered. I am trying to do the same by sharing my knowledge.

@Nava: You seem to be a fairly new starter as well, what have u r experiences been like?

 

[Nava]

I currently dont use any indicator ( though I am training my self to use the Moving avgs and simple Volume based indicators)

I use sprice action to decide uptrend/downtrend i.e. I draw a trend line on the chart and see what the trend is like.

As far as screening goes, as I had said earlier, i am currently only stickin to the AAA type of stocks as I think my knowledge about fundamental analysis and detailed technical analysis is in its infancy to say the least. Hence, rite now I stick to 2-3 of the best known companies in each sector. ( Banking: SBI BOI ICICI and likewise) As these companies have a proven track record and any changes in fundamentals are well accounted for in the press, hence i presume the price action is the interpretation of fundamentals. Hence, just try to analyse the current trend and based on risk:return ration, try and ride the trend.

As I had said earlier, I cannot thank this forum and its members more for all the help that is so selflessly offered. I am trying to do the same by sharing my knowledge.

@Nava: You seem to be a fairly new starter as well, what have u r experiences been like?

Rishi,

Thanks for sharing your way of trading. I am a newbee and came to market (part time) 10 months before without much knowledge. During october crash my capital went down to -50%. Then I strated my learning process and found this great people here to help. Now I recovered all losses. I am also concentrate on liquid stocks only.

Regards,
Nava,

 

[taruj]

Yes u have!!!! and i am so happy that u have....!!! cause i think i was making a hash of it....!!!
thats exactly what i want to do...... everytime i decide to buy somethin.... i have a intraday target price........ which is normally lower then the price at that time...... so yes u have understood my problem exactly..... and the solution that u have provided is simple ...... i sud not bother abt SLTP if i intend to buy at a price that is lower as compared to the goin price at that time.

My other problem is how to set up a stop loss once i have bot somethin???

lets say.... i bot a stock at Rs 100....... and i want to make sure that i am not in trade if the stock loses more the rs 10 ( i.e. falls to 90) ..... how do i set this up in ICICIdirect??? what i think form our previous discussions is that ...... i set up a limit sell order of Rs 90 with a SLTP of say abt Rs 92........ is that rite???

Also if the trade goes in my favour...... and say the price is now Rs 150....... i want to make sure that i lock in my profits........ in that case ......do i just modify my previous sell order ( limit Rs 90) to Rs 145 with sltp of Rs 147??? Can i do that???

If what i have understood form our previous discussions is rite...... and if i can do the 2 thins that i mentioned above....... it solves all my problems regarding stop losses!!! and takes a lot of load of my mind.......

I have been trading for 3 months now..... and yes u must have guessed it by now .......without stoplosses!!!!! i have been fortunate enuf to go thru this forum for abt 6 months b4 my first trade... and so had read saints 'fish' thread....... and never made ne losses on ne of my positions....... but the stoploss system in ICICdirect ........ only due to technical glitches ( on my part) was somethin i cudnt do.....

THanks to u and all the other contributors of this forum......... newbies like me get a chance to survive in this harsh stock market environment.

Thanks a lot again........ hoping to hear form u soon.

Regards,
Rishi

Dear Rishi,

I am still confused and asking the same question (abt ICICI Direct SLTP):

I have bought ITC at 154. Now my Target is 160. So when I set the sell order for the day do I do Sell -> Limit Price 160 SLTP 154 (or lower).

Rgds,
Taruj