.: Technical view by Nooresh

Tuesday, 7 May 2013

Technical view by Nooresh

Posted: 07 May 2013 06:17 AM PDT

Last time had posted a trade on TV 18 at 34-35 and got a quick 10% touching the target , post that the stock collapsed to 24. This is where trailing stoploss helps you.

Now the stock is again forming a triangle with a quick target of 32 and even 35-38.

Now the biggest problem with traders is a trading plan. This is how we generally tend to follow step by step. Everyone may have a different way to trade but a stoploss is a must in any trade.

-> Buy at 28 round abouts or in momentum above 28.5 ( Disclosure : recommended long today pre-emptive )

-> Keep a stoploss at 27.2. If breaks exit.

-> Stock moves to 31-32 book profits to the extent of half or 3/4th of your holding and take trailing stoploss to 28.5-29.

-> If stock moves to 35 take stop to 32 and ride till 38 or book fully.

-> Exit only if trailing stops at 28.5-29 or 32 breaks.

Also one need not be rigid on targets but be ready to adapt to the market conditions and take a call to book profits in between or according to the risk management plan.

The above steps is just a quick note. There is more thought which goes into every trade but above example can be a help to new traders.