SIP & SWP FOR POSITIONAL TRADERS.
SIP is Systematic Investment Plan & SWP is Systematic Withdrawal Plan.
It is very normal talk when we heard that trader says that whenever I buy shares, it starts falling. So I have suggestions as under :-
1 ) Invest only 50% of amount which you want to invest in the stock.
2 ) Keep buy order @ 5% below for 5% quantity bought initially.
3 ) Keep sell order @ 5% above for 5% quantity bought initially.
4 ) We can use Limit Order or After Market Hours Order for Order placement so no need to sit front of the screen.
It will be profitable trade in range bound as well as bearish trend with comparison with full investment at a time.
Gap Up Open & Gap Down Open will give additional benefits.
Trader will see less profit if stock is in bullish trend.
A Stock is trading at 200.00 and a trader wants to invest Rs.200000.00 therefore he has to buy 500 shares with Rs.100000.00 which is 50% of total investment.
Afterwards, trader has to keep buy order for 25 shares (5% of 500 shares) @ Rs.190.00 (5% below initial price) as well as he has to keep sell order for 25 shares @ Rs.210.00(5% above initial price).
If buy order gets executed @ Rs.190.00, trader has to keep buy order for 25 shares @ Rs.180.00 and sell order for 25 shares @ Rs.200.00.
If sell order gets executed @ Rs.210.00, , trader has to keep buy order for 25 shares @ Rs.200.00 and sell order for 25 shares @ Rs.220.00.
This should be done till utilization of total investment amount or sell of all shares.
Please give your feedback & suggestions.
Disclaimer :- Please paper trade & back test the method and take advise from authorised financial advisior. I will not be responsible for your loss as well as profit.
Thanks & Regards.
All The Best.