Posted by: OBAMA November 19, 2011
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@80s,
let me tell u how i would have done it. Hope it will make sense to u.
When i decide to buy a stock, i find a entry price(most of the time it is not a market price) and same time figure out where i want to sell it for profit and loss.
So, my order of buy will automatically have a sell limit(Profit) and sell stop(loss) order with it.
Now, many people who has interest in self-investing here in sajha, have another job to do in stock-market hours so they would not have a time to look how the prices are doing on the day. If u set yr risk parameters like that, u will have some peace in yr work and private life.
When we talk abt HAL, i can see a weekly high of 39.62 4 weeks back. If u have bought yr stocks after that, first assumtion of profit taking would have been 40 as u had thought. There will be some selling on recent highs. so setting 40 as sell limit price wold have worked fine for u.
But here comes the tricky part, u r bullish on yr stock. U changed yr mind and started thinking it could hit its moving day average resistance of 45. Now, what i would have done in this scenario, I would have sold at least 50% of my HAL @ 40 and moved my sell stop for remaining half to my buy price so that if my stock goes down for any reason, i would at least not incur any loss in remaining half. This way, u would have made some decent profit and tested yr bullish hypothesis at same time.
Further, if i have time, i would have seen how WTIC and brent crude pricess are doing and how the broad market is doing.
If u dont want to sell in loss then, u might have to incur upto 10 -12% paper loss( close to 31) for few weeks but in few months u would be able to sell it with decent profit unless broad market gives up to europe. Street is bullish for energy sector so being bullish on HAL makes sense to me.
let me tell u how i would have done it. Hope it will make sense to u.
When i decide to buy a stock, i find a entry price(most of the time it is not a market price) and same time figure out where i want to sell it for profit and loss.
So, my order of buy will automatically have a sell limit(Profit) and sell stop(loss) order with it.
Now, many people who has interest in self-investing here in sajha, have another job to do in stock-market hours so they would not have a time to look how the prices are doing on the day. If u set yr risk parameters like that, u will have some peace in yr work and private life.
When we talk abt HAL, i can see a weekly high of 39.62 4 weeks back. If u have bought yr stocks after that, first assumtion of profit taking would have been 40 as u had thought. There will be some selling on recent highs. so setting 40 as sell limit price wold have worked fine for u.
But here comes the tricky part, u r bullish on yr stock. U changed yr mind and started thinking it could hit its moving day average resistance of 45. Now, what i would have done in this scenario, I would have sold at least 50% of my HAL @ 40 and moved my sell stop for remaining half to my buy price so that if my stock goes down for any reason, i would at least not incur any loss in remaining half. This way, u would have made some decent profit and tested yr bullish hypothesis at same time.
Further, if i have time, i would have seen how WTIC and brent crude pricess are doing and how the broad market is doing.
If u dont want to sell in loss then, u might have to incur upto 10 -12% paper loss( close to 31) for few weeks but in few months u would be able to sell it with decent profit unless broad market gives up to europe. Street is bullish for energy sector so being bullish on HAL makes sense to me.