You have to exit when your predefined stop-loss is hit—not because you’ve stopped believing in the stock, but because you’ve committed to protecting your capital. Falling in love with a stock and hoping it will come back can turn a small planned loss into a much bigger one. One or two such trades can hurt not only your portfolio but also your confidence for the next several trading sessions.
Hey Ayush, going through something similar lately. Like @swing_ka_sultan mentioned, keeping weekly portfolio risk capped at 2-3% is key. One thing based on my experience having flat 1% risk per trade (if your position size is around 25% or less) is more and it will damage portfolio faster.I prefer 2%(some cases 1.5 percent) risk per trade but with a strict 0.5-0.6% stop loss keeps the actual risk tight while letting you take more trades within the same weekly cap. Plus add one more thing weekly feedback loop in your process.
@SarangSood Shouldn't be a fixed annual number it depends on the regime. In a bull market, you maximize the phase: 80-100%+. In a bear/choppy market, you protect capital and aim for 20-30%.
@AnkurPatel59 If you had put stoploss days low you would have survived however it seems you didn’t comprise with position size that’s why..i took day’s low so survived and added remaining quantity today by wick play entry to have desired quantity!!
WYCKOFF VOLUME CONCEPTS FOR BEGINNERS
1. ACCUMULATION (Smart Money Buying Quietly)
What Accumulation Is
Accumulation is when big institutions quietly buy shares after a downtrend.
They don’t want the price to explode yet — they want to load up without attracting attention.
What You See on the Chart
- Volume dries up → selling pressure is fading
- Price moves sideways → forming a base
- Down‑moves on low volume → weak sellers
- Up‑moves on slightly higher volume → early demand
- Shakeouts / springs → smart money removing weak hands
Wyckoff’s Key Volume Signals
- Low volume at lows → selling is exhausted
- Increasing volume on rallies → demand returning
- Climactic volume → final panic selling before reversal
- Spring + high volume → strong accumulation confirmation
What It Means
Smart money is preparing for a new uptrend.
This is where future leaders are born.
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2. DISTRIBUTION (Smart Money Selling Quietly)
What Distribution Is
Distribution is when institutions unload shares after a big uptrend.
They sell slowly, carefully, without crashing the price — yet.
What You See on the Chart
- Volume increases near the top → heavy selling
- Price moves sideways → topping range
- Up‑moves on low volume → weak demand
- Down‑moves on higher volume → supply taking control
- Upthrusts / bull traps → smart money selling into strength
Wyckoff’s Key Volume Signals
- High volume at highs → supply entering
- Lower highs + heavy volume → distribution phase
- Upthrust + high volume → fake breakout, smart money selling
- Breakdown with volume → markdown phase begins
What It Means
Smart money is preparing for a downtrend.
This is where trends die.