Here's a falling wedge in the middle of an uptrend. Volume picks up on the breakout. Price also taking support at the previous top. A classic case of Resistance becomes Support.
Long at 423 Stop at 400 Target 550.
Risk Reward 1:5
Using Covered Call. Short Axis Bank 460 CE April @ 6.
Incase we hit Stop-loss in spot, Option will help in bringing down the cost of Stop-loss. Remember we are in a counter-trend or rallies. So it's better to be cautious and should trail stop-loss once the position is in favor.
Trade active
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Comment
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Axis bank Cmp 445.
Axis April 460 CE short at 6 is now 0.
So Axis bank entry price is 423 and the stop is 400. ( 23 RS)
Risk getting lower to 17 rs. ( 23-6 )
Comment
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Trade closed: stop reached
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Trade closed: stop reached
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Axis Bank Stop-loss Hit.
Stop-loss always to be placed in systems. Any single tick below the stop-loss price is an SL hit.
There is no watching and waiting in Stops. If Axis closes around 401 and you don't exit assuming that it was on a closing basis, then it's very poor trading discipline.
Nothing is more dangerous than a closing basis Stop-loss.
A gap down tomorrow and your money and risk management are doomed.