LIC HOUSING FINANCE, from May 19th to Uptill June 17th, LICHSGFIN had a strong impulsive move. Since the 17th June top, price is in consolidation and remained above the 50% retracement level of the previous impulsive move. There is a high probability that an ongoing consolidation breakout may result in one more strong impulsive move.
Apply your money management before taking a trade, and trade management ones the trade is going in the anticipated direction.
How I set the target? Target is equal to the range of the previous impulsive move, added to the breakout price.
Nothing is a sure shot in trading, each trade must have a pre-defined stop-loss.
How I set the Stop-loss?
Here come the stop-loss placing methods which are always debatable. Books guide us to place the stop-loss below the swing low or below the lower line of a chart pattern in a bullish breakout. In this case, the Risk-Reward Ratio will be very poor because stop-loss will be 256 and the RR will be reduced to 1: 2.5 which I don't prefer in Positional Trading. So kept stop-loss below the probable support zone in the lower time frame. The disadvantage in this method is that the stop-loss is tight and may get triggered if there is a high volatility or price fluctuation, but I'm ready to lose accuracy over high reward.
In trading, if you have 40 to 50% accuracy, it will be more then enough. With a good Risk to Reward ratio and 40 to 50% accuracy, is a winning combination.
Many claim 80% to 90% accuracy and still, they are not on the Frobs richest list. If I get 80%-90% accuracy, "I will be The GOD OF TRADING". In Trading High Accuracy is a MYTH.
Trade active
⋅
Comment
⋅
Trailing Stop-loss for 269 to 281. ( A Swing Low )
Trade closed manually
⋅
Trailing Stop-loss hit. Sorry for the delayed update.
Its around the entry point again..can we enter at cmp for the set target of 353?
Equity-Earningz
⋅
@himanshu93, Yes, Of Course, it filled the gap and up again. Now it's time to trail stop-loss to 280 levels from 269. It's still a good risk-reward to buy at 295 keeping stop-loss at 280 for 353 as a target.
Taurus333
⋅
@Equity-Earningz, Thanks heaps for a quick reply! I am your new follower on this platform. Also I am new in stock market. Really liked your charts with exhaustive details!