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Categories Snlearnings

7 days 30 days All time Recent Popular
Subhadip Nandy
Subhadip Nandy
@SubhadipNandy16
Views, buy/sell signals, entry systems are over rated.

Execution and trade management skills are under-rated.

A thread

You buy 4 lots of TataConsmr 710 CE at 24, SL 18
( Risk = R = 6 points)

TataCon 710CE goes upto 30. What do you do ?

( this is where the 4 lots minimum comes into play)

1. You sqoff 2 lots. rest 2 you put SL at 24

2. You sqoff 2 lots, you put 1 lot SL at 24, another lot at 18
3. You sqoff 2 lots, sell 2 lots of higher strikes CE , say 730/740 and covert to a bull spread

In all the cases, you have taken some profit off the table ensuring you do not lose money on this trade while keeping yourself open for more profits in case it goes up more.
I have given you a gist of what you learn in various money management / position sizing books.
Use this.
SNLEARNINGS
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