Stock Trading and Other Things

tell me the funda a intra day tip says,buy above 100rs. trgt.105,stp.los 99,&sel below 95 stp.los 104 tgt.92??

i am struggling 2 understand the tips for intra day trade i recieve on my cell fone,i do only delivery i want to know intra day.some expert please help me

Public Comments

1. buy above 100rs. trgt.105,stp.los 99
means
buy the stock at 100, it's expected to reach 105 (target), sell it at 105. But if it reaches 99, there is possibility of loss, so sell it if reaches 99 to avoid more loss. (Stop loss)

sel below 95 stp.los 104 tgt.92
means
Sell at 95, if it reaches 104, there is a high chance of drop in price, so sell it at 104 (at max, dont wait any more). It is expected to reach 92, after dropping.

2. a stop loss is used to cover your position - be it a long or a short.
stop at 104 does not really mean u can again short at 104....once u short below 95( maybe at 94 or anything < 95) use 104 as the maximum loss u will take....

that means if u buy above 100[lets say at 101]....and if it reaches 105[book ur profits - u make a profit of 4 points..] and if it reaches 99[exit ur position - u make a loss of 2 points]

again if u short it below 95[lets say at 94]...and if it reaches 104[exit ur position - u make a loss of 10 points!] and if it happens to fall to 92[book ur profits - u make a profit of 2 points??!!!??]...

what has been written about the short above is incorrect....104 is the place where you "must" exit your short position and not a place where you should short it again....after that it may or may not go up....

well that buy call was perfect with a risk-reward ratio of 1:2 but coming to the short it was not a good call and should not have been worked with...

i hope i was able to explain it well for u...

3. this refers to two different calls. Based on the technicals, generally breakouts are seen either in +ve or -ve directions. But these breakouts will be confirmed only when the price of the stock either crosses above or below a certain price, called the breakout price.

So in ur case, for the first call, its a positive breakout. So if the stock breaksout of the price 100, then it enters into a +ve zone. Now the next target expected is 105. So u should buy at something greater than 100, say at 100.50 and expect that the price moves to 105. The stop loss helps in exiting in adverse conditions preventing you from incurring more loss. That is in any case if the price of the stock after purchasing goes below 99, then u have to sell the stock and book the loss.