In the last blog we have discussed how to manage the size. Here are some views I had posted in a discussion thread. We are discussing the LT & INFO trades on 22nd June.
Entry Point : If the price gaps up or down and is above or below the buying or selling target, the trade should be taken. . For entry, normally I would let the market trade for 15 mins without taking any trade. If the price is still above or below the target price, after 15 mins, I will enter the trade as close to the low as possible. Like in LT on 22nd June, it was possible to enter the trade somewhere below 1660.
Exit Point : Normally for my performance I take a price near the end of the day, but while looking at the chart, if I see a price point which was an obvious exit point, I will take that price. Normally, if a price has made a high and come down and is sitting below that high price for more than 30 mins, I will think of exiting the trade. I will see if it tries to break the top and fails after 30 mins, I take the trade off. But if it does break above that high before 30 mins,I would move my stop to just below the lowest of the range that was formed below the high.
The reason why exit points cannot be given before, is that price moves with momentum and the momentum decides whether it will go further up or down. And profits should be let to run as much as possible to take care of all the losses you make when stops are hit !!
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