What a day !! I think anyone, even my 4 yr old son could have made money in these markets !!
From today, I have changed the quantity for each name. Rs. 200,000/- is fixed for each share, which is then divided by the buy or sell entry price to get the quantity. Based on this quantiy, the total possible loss at entry & stop loss point is calculated. But when the share gaps up (like today) or down, then the actual possible entry price and stop loss difference is considered and the quanity altered so that the total loss in case of getting stopped out remains the same.
For example in SBI, at the entry price given yesterday was Rs. 2,171/-, which would have allowed 92 shares to be bought to total Rs. 200,000/-. The total loss in case the trade was stopped out at Rs. 2,165/- would have been Rs. 552/-. However, as the price gapped in the morning and after 15 min started to break up, the entry price becomes Rs. 2,205/-. Therefore, to keep the total loss constant at Rs. 552/- if the trade gets stopped out at Rs. 2,165 the quantity of shares traded becomes only 13.
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