BPCL has fallen over 9% on disappointing earnings.... that's the past
Looking at the stock right now, we can see
1. It is falling on low volume towards the support zone = good bullish sign ( Since there is no selling in the market )
2. It is present at a major support and trend line ( Supports hold in bull markets )
3. Support from 200EMA = bullish sign
We should position size..
What is position sizing?
It is when you first add half your position to check If the market is saying you are right or wrong, if the market moves in your direction, you will add your second half and tighten your stop loss. This way you add two positions but one only when the market shows you that you are correct.
Example: Suppose your risk is 100 per trade, You first buy enough Qt to risk only 50 ( Typically with a larger stop) and if the market forms a green candle or another bullish sign, you add another Qt to risk 50 more ( Total risk 100) and your second stop loss becomes tighter ( most probably at the breakeven of the first position) this way you minimise your loss but ur reward is the same and even more. If your first stop gets hit, you accept your mistake and move on.
Add to more positions once 50EMA breaks and tighten the stop loss.
Keep It Simple
Looking at the stock right now, we can see
1. It is falling on low volume towards the support zone = good bullish sign ( Since there is no selling in the market )
2. It is present at a major support and trend line ( Supports hold in bull markets )
3. Support from 200EMA = bullish sign
We should position size..
What is position sizing?
It is when you first add half your position to check If the market is saying you are right or wrong, if the market moves in your direction, you will add your second half and tighten your stop loss. This way you add two positions but one only when the market shows you that you are correct.
Example: Suppose your risk is 100 per trade, You first buy enough Qt to risk only 50 ( Typically with a larger stop) and if the market forms a green candle or another bullish sign, you add another Qt to risk 50 more ( Total risk 100) and your second stop loss becomes tighter ( most probably at the breakeven of the first position) this way you minimise your loss but ur reward is the same and even more. If your first stop gets hit, you accept your mistake and move on.
Add to more positions once 50EMA breaks and tighten the stop loss.
Keep It Simple