Buy Above 202 Target 208, 212 Stop Loss : 197
As answered by others, It is clear that stock is in buy zone above 202 so you shd be the buyer in this zone. But there are other factors that has to be looked.
If I have to use these number for risking my hard earned money, this is how I will go about it.
1) Is the stock in Buyzone now i.e. > 202 ? i.e. I will be buyer here
2) Has the recent move been upward or downward ? i.e. stock is not falling from 210 and going down. I want to ensure that it has crossd 202 coming from 201.. not coming from 203..
3) What is my risk ? Current market price minus Stoploss price. say stock CMP is 202.5 then the risk = 202.5- 197 = 5.5 Rs.
4) what is possible reward ? at target 1 and at target 2 ? so reward for T1 = 208-202.5 = 5.5 and for T2 = 9.5
5) What is my Reward to risk ratio (RRR) ? for T1 RRR = 5.5/5.5 = 1. For T2 = 9.5/5.5 = 1.7
Now taking the decision becomes 10yr old kids job. Is it worth risking 5.5 rs to make 5.5 and take risk.. or u are better off skipping the trade and keep you 5.5 Rs in pocket without any risk.
Notice that these numbers will change depending on your entry price .. so if u get entry at 205.. with stop at 197, then RRR will be 3/8 for T1 and 7/8 for T2. That means it makes no sense to risk 8 rs for making 3 rs of 7 rs.
Hope this helps in getting into right thought process.. i.e. thought process of pro trader.
Happy Trading