Comment on Intraday stock trader par excellence
commented on
05 Oct 2013, 10:21 AM
Hi GBharadwaj,
Congratulations on your amazing feat! Really an inspiring story.
I have been actually facing issues with exits and your post seems to be having a clue for it. Earlier I used to have fixed tgt and SL exit : either -1x (loss) or 2x(profit). In your case x ~ 1000/-. But I see you target about 2000/- a trade but at the same time you don’t let a profitable trade turn in to loss. This captures crux of my query because though some philosophies may say you shouldn’t exit unless your exit targets are hit, psychologically, seeing at +1000/- profit turn into -1000/- loss is bit damaging (atleast for me) . So at what point you move your SL to BEP (break even point). Example : Consider a scrip trading at 1000 . Suppose you go long at 1000, So your SL would be 990 and expected target would be 1020 (or some higher level depending on momentum). Say transaction cost is 0.5/- for a round trip B+S (so your BEP is 1000.5/).
Can you please guide on your exits (which are path dependent) for the following scenarios regarding price movements?
(1) Example : 1000-1012-1010-1021-1018 ( I would assume would exit at 1020). So you Ans would be (Exit: 1020)
(2) 1000-1012-999-1025 (Exit : )
(3) 1000-1008-995-1030 (Exit: )
(4) 1000-1119-1008-1024 (Exit: )
(5) 1000-1004-1000-1020 (Exit: )
(6) 1000-1002-990 (Exit: )
(7) 1000-1012-990 (Exit: ).
GBharadwaj, I understand such queries are too naive, but Exits is the thing I am struggling with. Atleast over time I have realized I too don’t prefer a profitable trade turning into loss, the indecision around whether I should let the profit run or let either of the exit points be hit causes lot of confusion. Since you have been practically and successfully dealing with the thing, you guidance would be of immense value.
Best regards,
nitin