In intraday I do not do
calculation of what will be loss per share if stop loss is hit verses profit if
target is achieved. Over the years I came to know this calculation is useless,
but I do trade in my limit. I also prefer to book profit without waiting for
target. A bird in hand is worth two in the bush.
Many a times I buy a stock at different
levels for example I will buy at 473.40, 463.50, 453.60, SL 445.50. Let us
assume one buy 1 share at 473.40, then he must buy 2 at 463.50 and 6 at 453.60,
this will give him average of 458 per share.
Calculation of loss will instill FEAR and one likely to be a
victim of GREED by not booking profit by waiting for target.
