Stock market commodity & forex – how to decide right volume,Stop loss & Target?
There should not be a same formula for stop loss & targets in changing stock market conditions.Same in commodity mcx & forex market.
Try to practice minimum stop loss, because it is easy in recovery.
If nifty or any scrip in going down since last 3-4 days,then we can buy big volume on reversal.(say buy above VWAP or high that day) expect big target and may keep a big stoploss 2 to 5%.
after 1 day reversal, 2nd day may show a big move if it is still making reaction high.(so keep buying abv high with medium quantity,medium stoploss value & medium to large profit in parts.because thare may be profit booking on resistance levels.
If Nifty or any scrip is on the pick then buy minimum quantity with very small stoploss & quick profit booking with training stop losses.Sometime unreasonable jump in price may be there, so you will be able to get that huge profit.