which is a better strategy

Depends on what type of market condition prevails at that time

1. sell @ R and STP above might works good when mkt is in range bound trading and low volatility

2. Buy above R and STP below might works well when market is on trending or in start of such phase

My question to that, Why not do both? One of the two is bound to succeed if done on the same stock is it not ?

Just a thought . What do you guys think?

Biyas....ur caps are hurting me

Both strategies are good, it depends wether u like to trade with the trend, or like to fade it.

I personally feel that buying above resistance is better, at least you can exit in quiet times, if trade is not working out.

But if u are short, and price blows thru resistance, squaring up in a fast rising market may be a bit on the difficult side, as big orders cannot be executed at a good price.

I have done both types, and feel that buying above resistance better.

I got stuck quite a few times when my sl was triggered but not executed.

anything above 10,000 qty becomes difficult to trade when prices are moving fast.

Hope this helped you.

10k quantity is PHEW !!!!!!!!!!!!! in Futures stock.That guy who lost in IFCI (lot=7875).

Scrips like rcom, its possible to execute, but satyam, ivrcl....problems galore, when u want to execute in a 10 paise gap.

if u say mkt on trigger, it will surely execute, but the price at which the trade is done can go upto 50 to 60 paise more against you.

i agree wit RJ, if ress is broken then u may see a fast move.


happened with me several times

thanx friends for your helpfull replies. loosingstreak's reply is also good.

if one find a resistance on rcom at 440. then go short around 437, with a sl limit order (445-441.05, i like to use a long gap sl for protection). one can also place a sl buy order at the same time above 441 (441.90-441.05). if it triggered sl then two trades will be executed, 1st my short positions will be sqared-up & 2nd would be my long position. after that i can place a stoploss sell order against my long position. am i right loosingstreak???

you are right. but the main problem is to identify (at least for me) the market condition in day trading. thats why i want to stick one of my trading plan. it should be a long/short strategy as mentioned above. but i am unable to decide which strategy should be use.

Right, but why 2 orders for the long. you could make it 1 order for double the original quantity since your stop for exit and limit for entry are same. Or is it not? The rest of the logic of the trade seems to work out fine. At least thats the way I would think.
Do point out flaws if any.