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stop loss order

Discussion in 'Individual Trading Strategies' started by 1sreerajvs, Dec 22, 2020.

  1. 1sreerajvs

    1sreerajvs Member

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    I usually check the position of my holdings at 3 pm. Day close below the stop-loss point I will close my position. it helps me a lot in trading. because stop-loss sometimes touches and bounce back in intraday, if I keep a stop loss in the machine. according to this yesterday, nifty fall can't triggerd my stop-loss.

    I only take trade-in fundamentally strong stock, so I think if a fall happens it will be a limited loss in intraday. so this type of order execution will not harm more.

    I took this strategy from some posts here& Shabbir's ebook. if I'm wrongly realized, please let me know.

    Some cases morning panic and afternoon fade pattern used
     
    1sreerajvs, Dec 22, 2020
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  2. shabbir

    shabbir Administrator Staff Member

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    This is perfect. However, in some cases a blip below the stop loss level isn't considered a stop loss as well.

    Like in example of Burger King, there was some trade below 150 on 21st Dec 2020 but with volume of 20 millions shares traded on that day if few shares were traded below 150 for less than 5 minutes, I don't consider it as a stop loss hit for my trade because buyers poured in when the price went down and took it above 150 in a matter of minutes.
     
    shabbir, Dec 23, 2020
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  3. 1sreerajvs

    1sreerajvs Member

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    I didn't look at it in such a way, It added to my strategy. Thank you Shabbir sir for your prompt reply.
     
    1sreerajvs, Dec 23, 2020
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  4. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
    shabbir, Dec 23, 2020
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