I want to discuss my intraday stock trading strategy. I am new to the market and doing my research work at the moment to get on with it.The strategy is based on what i have learnt till now.....
Here,
Consider a stock X of Rs500 (a volatile share)
Now suppose it gains Rs 5 and reaches Rs505 on on some time of the day.
This is where I come in. Supposing that the stock is gaining on that day and moving with the market I decide to put a limit order of 1000 shares of Rs506.
Now as an when the share reaches Rs506 my deal will be activated. Now as the stock is moving up lets say its deviates Rs 0.5 and reaches Rs506.5 i can immeditely sell the stock with a profit of Rs500 (1000*.5 = Rs500)
To prevent huge losses i ll olways use stop loss ( in this case Rs505.5)
2 - 3 trade like this a day can fetch me good profit daily.
Strength:
1. I continue with the market trend and try to book only small profits.
2.I use stop loss strictly to prevent huge losses.
Weekness:
1. I ll incur loss only if the limit price i choose is the Highest price the stock goes to attain on that day, for which i have used a stop loss.( probability that the price i choose will olways be day`s high is almost negligible [ i think ].
Thnak you.
This is just on the basis on what i have learnt uptill now,
Here,
Consider a stock X of Rs500 (a volatile share)
Now suppose it gains Rs 5 and reaches Rs505 on on some time of the day.
This is where I come in. Supposing that the stock is gaining on that day and moving with the market I decide to put a limit order of 1000 shares of Rs506.
Now as an when the share reaches Rs506 my deal will be activated. Now as the stock is moving up lets say its deviates Rs 0.5 and reaches Rs506.5 i can immeditely sell the stock with a profit of Rs500 (1000*.5 = Rs500)
To prevent huge losses i ll olways use stop loss ( in this case Rs505.5)
2 - 3 trade like this a day can fetch me good profit daily.
Strength:
1. I continue with the market trend and try to book only small profits.
2.I use stop loss strictly to prevent huge losses.
Weekness:
1. I ll incur loss only if the limit price i choose is the Highest price the stock goes to attain on that day, for which i have used a stop loss.( probability that the price i choose will olways be day`s high is almost negligible [ i think ].
Thnak you.
This is just on the basis on what i have learnt uptill now,
