November 1, 2017

AXISBANK: how to trade wild swings in a stock

AXISBANK moved from 530 to 450 and then back to 530.... all this in 12 days.

How do you trade this stock?

This depends on the chart timeframe you are using.



For eg., if you are trading on EOD charts, your SL for long would be hit and then you are without a position. There will considerable frustration to see the stock back to where it tanked from.

But if you had managed the risk in the trade, you would lost 1-2% of your capital.

For someone who was out of the market during this time, he/ she has missed nothing.



But if you were trading hourly charts, then you could have made some very good money.

You would shorted on 16th OCT around 520 and gone long above 460 .



NOTE: this post is educational. It is not necessary or possible to trade all signals.

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