Time to Book Profits? | How to trail stop-loss? | CA Rachana Ranade

CA Rachana Phadke Ranade2 minutes read

The video provides guidance on managing positions in a rising market by focusing on booking profits using the Nifty index as an example. It introduces three methods for trailing stop losses: Super Trend, Moving Average, and Parabolic SAR, with specific profit booking points recommended for each method.

Insights

  • Knowing when to secure profits in a rising market is crucial, with specific strategies like Super Trend and Moving Average providing clear exit points to consider.
  • Trailing stop losses, through methods like Parabolic SAR and a 3-5% buffer from the peak, offer additional ways to manage positions effectively and mitigate potential losses.

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Recent questions

  • How can I manage positions in a rising market?

    By booking profits strategically and utilizing trailing stop losses.

  • What is the Nifty index used for in investing?

    To illustrate potential profits from investing over time.

  • When should I consider locking in profits?

    When the market reaches specific levels indicated by Super Trend, Moving Average, or Parabolic SAR.

  • What are trailing stop losses, and how can they help?

    Trailing stop losses are methods to protect gains and limit losses.

  • What is the bonus method for managing positions in a rising market?

    Considering giving up around 3-5% from the highest point for stocks.

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Summary

00:00

"Managing Profits in Rising Markets: Strategies Revealed"

  • Video offers guidance on managing positions in a rising market, focusing on booking profits.
  • Example using Nifty index to illustrate potential profits from investing over time.
  • Discussion on determining when to lock in profits, considering various scenarios.
  • Introduction to three methods for trailing stop losses: Super Trend, Moving Average, Parabolic SAR.
  • Super Trend suggests booking profits at 19,031, Moving Average at 18,800.
  • Parabolic SAR also indicates exiting around 18,800.
  • Bonus method advises considering giving up around 3-5% from the highest point for stocks.
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