which is a better strategy

[biyasc]

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.

i can explain why i was talking about two orders.

assume that you are short in rcom @437 & your sl is 441. so its better to place a sl buy order with 1% gap, as per my view the sl should be in beetween 446.05-441.05. now if it move up above 441 with gap, then i am secured, because i have placed a sl with 1% gap.

but when i am in long i just want to pin point my entry (just above 441). thats why i placed an another sl buy order in beetween 441.95-441.05.

thats my view. i may be wrong.

 

[ratan jain]

loosingstreak: its very difficult to psychologically execute ur strategy..

U have just taken a loss on a short trade, and the same instant u want to reverse to a long trade.

Also, this type of trading can also be termed as revenge trading, meaning u say to the price " how dare u hurt me, wait, I will show you"

U enter long, the mkt goes into a small correction, and u are out!

 

[ratan jain]

a 1 % gap for SL!!!!!!!!!!!!!!

20 paise will help u execute upto 10000, biyas, in rcom

u want to keep 5 rs as gap? arre, I sometimes have a 1 rs sl in rcom, with a 10 paise trigger gap

 

[uasish]

"Sauda Palti" is the most difficult thing like a double edged sword.

 

[loosingstreak]

loosingstreak: its very difficult to psychologically execute ur strategy..

U have just taken a loss on a short trade, and the same instant u want to reverse to a long trade.

Also, this type of trading can also be termed as revenge trading, meaning u say to the price " how dare u hurt me, wait, I will show you"

U enter long, the mkt goes into a small correction, and u are out!

I dont know what it is called ratan, but my reasoning is that if the market has given a fake out and reversed there would be many traders like me caught on the wrong side and stops placed where mine is, which if trigered is going to lead to a big move in the opposite direction so why not take that trade. The market normally traps only one side from what little experience I
have.
Of course you can only loose as much as your stop. If you are wrong both ways its just too bad.
Alway open to advise and suggestions of experienced traders like you.

 

[biyasc]

a 1 % gap for SL!!!!!!!!!!!!!!

20 paise will help u execute upto 10000, biyas, in rcom

u want to keep 5 rs as gap? arre, I sometimes have a 1 rs sl in rcom, with a 10 paise trigger gap

i understand ratan. but still i am using stoplosses with 1% gap. i had a bitten experience in past. i short zee tv at 248 & placed a sl buy order for 500 shares of zeetv at 251.95-251.05. then i closed my terminal & went somewhere else. when i come back at 3 pm i saw that zee is trading at 260 level & my stoploss is triggered but not executed.

 

[swagat86]

well it happens all the time in fast movin mrkts. U gotta be very careful. Even on liquid counters it may happen.

thats y i love to stay near the terminal thru out the day.


thanks

 

[loosingstreak]

i understand ratan. but still i am using stoplosses with 1% gap. i had a bitten experience in past. i short zee tv at 248 & placed a sl buy order for 500 shares of zeetv at 251.95-251.05. then i closed my terminal & went somewhere else. when i come back at 3 pm i saw that zee is trading at 260 level & my stoploss is triggered but not executed.

You mean you put in a limit stop order ?

 

[biyasc]

You mean you put in a limit stop order ?

yes loosing streak

 

[biyasc]

well it happens all the time in fast movin mrkts. U gotta be very careful. Even on liquid counters it may happen.

thats y i love to stay near the terminal thru out the day.


thanks

yes swagat thats true. but what about following problems:

1: power cut.
2: net connection down.
3: broker's phone is busy.

these problem may happen anytime thats why i always place a limit sl order with 1% gap. so i feel more secure.