Intraday trade repair
If you are following our strategies then you can't trap yourself in any big loss, but suppose you didn't follow and you are in middle of some big loss,
Then we are having some wonderful trade repair methods.
Basic principles of trade repair.
1 stop or control the loss making position.
2.wait for any right opportunity from other sector.
3.you can change your direction (buying to selling )
Change trading instruments from high risk to low risk. (Stock future to stock option, or option to equity cash)
4.cover losses in 3 to 4 shots.
5.Don't repeat the same mistakes which initiated this loss and turned into big.
Suppose you bought any share at price of
INR 180, there was a sudden reversal in sector or nifty/sensex.
And that stock reduced to 150.
Reduce quantity from 500 to 200 first.
Don't cost average in panic.
If it happened in morning slot(9.15 to11.30am)
Then wait till 1.20pm.
The stock may touch the support and retest it, nifty might bottom out for next 30 to 60 minutes.
Buy 700shares in parts near support,take SL of 50 paisa only.
If it shows 2-4% short covering after 12%downfall.
700 shares will recover 2000# from total loss of 4000.
Rest should be recovered in forthcoming trade sessions with tightly calculated risks only.
Suppose you are holding all the quantity and it fell down by12%.
Huge loss is there.Traders generally exit at worst bottom price in bottom due to illogical waiting in price fall.
Don't sell in panic if 170 falls to 150.
Just see atp.if it is 158.then place selling orders@155 -157 in parts.
It will touch that price to hunt stop loss of short sellers and you will get better price.
That will regain you confidence.
So it may be possible that you can enter into short selling of the stock when it falls from 157-155 to 145.
If you are not placing prior orders,then you won't be able to take decision and place sell order in that sudden moment of short covering spike.
Sometimes,traders buy more quantity at155-157 to cost average in hope of total recovery of stock price.
This silly mistake will double the losses and reduce confidence and mental balance to almost zero level.
Big money is based on many small things.
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