Ashok Leyland was given as a buying opportunity to our subscribers for today. The trade was to buy above 62.30. This level was crossed in the first 30 minutes so we have a long trade. An initial stop was given at 61.00. The trade closed today in our favor. How do we manage the trade from here, given the volatility in markets?
Today, as a follow up, our suggestion for this trade is to keep a trailing stop below the low of the previous trading day. We want to catch an up move but we would like to exit at he first sign of weakness. On this basis, the stop loss for tomorrow is 61.50, and for subsequent days, it will be the low of the previous day.
Exit strategies should be different for different market environments.
Comments are welcome.
I also have a Link to a trading education page, which users may want to use. Please have a look.