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Stop Loss

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  #1  
Old 15th August 2006, 09:20 PM
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Default Stop Loss

HI!

Frankly I am new to this..

Waht I find disturbing is how the stop loss work on a potral of a broker.

The more you talk with broker the more you get confused..

can someone tell me if SAR/PARABOLIC( FOR A TRENDY MARKET) CAN BE MADE TO WORK ON A BROKER WEB PAGE ..

IF NOT HOW TO PROTECT YOUR CAPITAL OR LOSS

BRGDS
AVIJIT
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  #2  
Old 15th August 2006, 10:17 PM
aad aad is offline
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Default Re: Stop Loss

Quote:
Originally Posted by captaray View Post
HI!

Frankly I am new to this..

Waht I find disturbing is how the stop loss work on a potral of a broker.

The more you talk with broker the more you get confused..

can someone tell me if SAR/PARABOLIC( FOR A TRENDY MARKET) CAN BE MADE TO WORK ON A BROKER WEB PAGE ..

IF NOT HOW TO PROTECT YOUR CAPITAL OR LOSS

BRGDS
AVIJIT

Dear AVIJIT,

Normal method of putting stoploss at lowest price of previous 3 candles is what generally followed and savvy professionals have idea where this stoploss is. They can create a deliberate "noise" during intraday activity when upward breakout is on the way, which triggers your stoploss (with stoploss of most others in your category) thus forcing you to sell at lowest price. The same pros buy stocks at these prices (which earns them a good price) and then the market goes into a rally keeping us wondering why we did not keep stoploss somewhat lower.

I have deviced my own method of putting stoploss which is slight modification of SafeZone method invented by Dr. Alexander Elder (to know more about SafeZone, read "come into my trading room" by same author). If today's lowest price is lower than previous day, previous day's low is taken as the basis for my safezone. If today's low is higher than previous day then the difference of today's low and previous day's low is added to previous day's low to find the safezone. Once I go long, I calculate 9 days EMA (exponetial moving average) of safezone and put a stoploss at that price.

It has worked for me very well.

Regards,

Abhay (AAD)
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  #3  
Old 3rd November 2006, 01:14 AM
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Default Re: Stop Loss

Hi,

As per the turtle trading system, stop loss should be the 10 day low. That is if the price goes below the loest price of 10 day low, then square up your long position. This works most of the times.

Also a 20 day EMA works as a very strong resistance in a trend market. If prices go below the 20 day EMA then sell your positions.

Stop Loss works best in trending markets, but in volatile markets where price movements just whipsaws, stop loss doesn't give that much advantage. Price just touches the stop loss and then rises again keping us out of the market when we could have gained.

Regards,
Ashish
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  #4  
Old 3rd December 2006, 02:18 AM
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Default Re: Stop Loss

Quote:
Originally Posted by aad View Post
Dear AVIJIT,

Normal method of putting stoploss at lowest price of previous 3 candles is what generally followed and savvy professionals have idea where this stoploss is. They can create a deliberate "noise" during intraday activity when upward breakout is on the way, which triggers your stoploss (with stoploss of most others in your category) thus forcing you to sell at lowest price. The same pros buy stocks at these prices (which earns them a good price) and then the market goes into a rally keeping us wondering why we did not keep stoploss somewhat lower.

I have deviced my own method of putting stoploss which is slight modification of SafeZone method invented by Dr. Alexander Elder (to know more about SafeZone, read "come into my trading room" by same author). If today's lowest price is lower than previous day, previous day's low is taken as the basis for my safezone. If today's low is higher than previous day then the difference of today's low and previous day's low is added to previous day's low to find the safezone. Once I go long, I calculate 9 days EMA (exponetial moving average) of safezone and put a stoploss at that price.

It has worked for me very well.

Regards,

Abhay (AAD)
Hi Abhay,

New to the forum. I'm into SwingTrading (pretty raw & new!) I was looking for a better method for my SLs (currently i use the 12d EMA as the basis) when i came across your post. I read your method and would like to give it a try but i first want to make sure i understand it correctly.

As far as i understand this is the way you do it :-

If today's lowest price is lower than previous day (low?)*, previous day's low is taken as the basis for my safezone
(means you place your SL a few pips lower than the previous day low & NOT today's low, right?)

If today's low is higher than previous day (low?)* then the difference of today's low and previous day's low is added to previous day's low to find the safezone.

Once I go long, I calculate 9 days EMA (exponetial moving average) of safezone and put a stoploss at that price.
(means you use the first 2 methods only while entering the trade, right?)

* i assume here 'previous day' means the previous day LOW (& not close) Am i right?

Please confirm.

Thanks & happy trading
Kalyan.
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  #5  
Old 13th June 2007, 10:05 AM
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Default Re: Stop Loss

hello, do you know hot put a stop loss in excel
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  #6  
Old 6th March 2008, 01:47 PM
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Default Re: Stop Loss

Hello Friends,
I know this is off the topic but can someone please tell me how how much is taxed for trades done within a period of less than one year? and also more than a year? and should I contact a CA to file/pay my tax ect.
Thanks & Regards,
Preston Myers.
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  #7  
Old 6th March 2008, 02:47 PM
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Default Re: Stop Loss

Quote:
Originally Posted by prestonmyers2 View Post
Hello Friends,
I know this is off the topic but can someone please tell me how how much is taxed for trades done within a period of less than one year? and also more than a year? and should I contact a CA to file/pay my tax ect.
Thanks & Regards,
Preston Myers.
10% of gain if it is termed as short term capital gain.(15% from next year.)
30% if treated as business from income.
no taxes for more than one year.
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  #8  
Old 6th March 2008, 04:43 PM
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Default Re: Stop Loss

Quote:
Originally Posted by drpsiva View Post
10% of gain if it is termed as short term capital gain.(15% from next year.)
30% if treated as business from income.
no taxes for more than one year.
I bought most of the stocks after january....If i sell them within this year..what is my short term capital gain tax 10% or 15%
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  #9  
Old 6th March 2008, 05:40 PM
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Default Re: Stop Loss

Quote:
Originally Posted by bhuvans View Post
I bought most of the stocks after january....If i sell them within this year..what is my short term capital gain tax 10% or 15%
If sold within a year from the date of buying, then @ 10%
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