@tamizh_79 Using Fib extensions 0.5 level shows 180... looking at volumes , and if the price don't cross 50 MA ... we can expect it to run atleast till 130 ... whatever it might be , follow risk management strictly ... no one can accurately predict stock movement... be cautious it's illiquid stock too
tamizh_79
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I hold 1000 qty @ 103/- ... what's your thoughts on it ...shall I hold it!!! and what is illiquid stock
VarunNeel90
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@tamizh_79 it's at 92 now and at the level of 200 day moving average ... if it goes below it and closes , I advice you to exit all your positions immediately... because the broad market is below 200 day moving average which makes it riskier to hold on to any stock positions.
illiquid stocks are those where there are no sufficient buyers and sellers which makes difficult to buy or sell .... so be careful
VarunNeel90
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@tamizh_79 Bro don't unnecessarily risk your money please, I have gone through that. stock market is not a gamble and if u are asking me what to do, I advice you to better stop putting your real money and do paper trade and learn the concepts...
I don't know which strategy u are using but trust me all those are overrated ..... risk Management and position sizing based on risk or stoploss is the only thing that matters in stock and if u combined it with compounding... trust me u can make wonders.... at 103 ... I think whatever entry strategy u followed is not good ... so get out of the trade if u want to save your money
VarunNeel90
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@VarunNeel90 Small correction , it's not at 200 day moving average yet.. but by now u lost 10% of your capital ,so better exit and later re enter when the stock is in favourable position... u can check for that entry concept in my previous posts and ideas too based on Mark Minervani VCP strategy ...
VarunNeel90
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@VarunNeel90 Mistake was in my settings , actually the broad market is below 50 day Moving Average...
anyway , check Van Tharp videos or books to learn more about position sizing ... in one of my previous post , I explained the method to take ATR based stoploss
tamizh_79
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thank you very much for your reply bro...I will exit now and will do paper Trade first... any starting point on how to to paper Trade !!!
@tamizh_79, if you are completely new to trading... keep away from derivatives.... good that you are trading in equity right now but dont take huge positions ...
i advice you to download books of Mark Minervini and go through them... along with Jessie livermore.
also research about Van Tharp risk management , Kelly criterion for position sizing.
stick to swing trading... u can use real money but very very less... like 2000 or anything below 5000rs... fix it as your max capital and then start risking 1% of it for every trade. Calculate the position size based on that.
I'll post another idea explaining my way of position sizing by taking an example trade.
for Trade entry and Exit strategies .... stick to Mark Minnervini and Livermore startegies ... u can also find brief explanations of their ideas in youtube channels like Swedish investor .
good luck...
also understand the concept of Compounding.......... let me tell u ... even if u can make 10% ( actually hard ) per month through swing trading on average and without pulling out your profits..... starting with 10000... 30lacs in next 5yrs .... 92crs in next 10yrs and God knows what u can do after 15yrs... so stay patient with stock market... once u are aware of it, tried and learned the important aspects and application of them in real markets... u can then deploy big amounts ... but atleast take a year to learn.