How to Decide Right Quantity, Stop loss & Target value?

How to decide right Quantity, Stop loss & Target value?

There should not be a same formula for stop loss & targets in changing market conditions.

Try to practice minimum stop loss, because it is easy in recovery.


If nifty or any scrip in going down since last 3-4 days, then we can buy big volume on reversal.(say buy above VWAP or high that day) expect big target and may keep a big stoploss 2 to 5%.


after 1 day reversal, 2nd day may show a big move if it is still making reaction high.(so keep buying abv high with medium quantity, medium stoploss value & medium to large profit in parts. because thare may be profit booking on resistance levels.


If Nifty or any scrip is on the pick then buy minimum quantity with very small stoploss & quick profit booking with training stop losses. Sometime unreasonable jump in price may be there, so you will be able to get that huge profit.


PUT/CALL RATIO (what is the use in trading of stock market futures & option



PUT/CALL ratio is the ratio of number of puts & number of calls.

It gives an indication about sentiments of market.

If number of put are increasing, then traders are seeing negative trend ahead.

But if put/call ratio increases & crosses average range, then sudden reversal suspected.

So put/call ratio more than 1,means puts are more.

less than 1 means calls are more.



go to & see useful data in derivative segment.


google search for PUT/CALL ratio of different stocks.


take minimum & maximum put/call ratio 3-3 stocks in record & see their further movement in coming weeks.

It will give you right idea of PUT/call ratio average range & then reversal.


click the link below to see this details

(sample shown from above website link)

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