Entering a trade:

While entering a trade, first of all focus on one thing that what is the risk involved in it, and what is the reward expectation. A good trade should have reward of atleast 4 times the risk. A great trade can have 5-6 times, and an excellent trade has atleast 10 times the reward. There can be either of two things:

1) Entering near supports with support level as a stop loss, and targets would be the resistance. These carry a small risk but the chances that it will rally are small.
2) Entering when a resistance is crossed, and putting a stop loss of near support. Here the supports are usually far off, so they carry a big stop loss but a fair degree of probability that the anticipated trend has set in.

There is no other way to trade.
While entering, understand other risks also: like scope of further movement left in the index, and banning in FNO..

Trailing:

When you have entered a trade, it’s very important to trade patiently and intelligently. One has to be patient, But at the same time one has to remember the levels and anticipated movements. When you are trailing, book near intermediate resistances if trading long, and book near intermediate supports if trading short. If you search a reason while entering, then you should have a reason to exit also. Always hold with a trailing stop.

Targets:

Targets are usually the resistance level and if your stock just touches your target and reverses back immediately, that means your target was precise. So, targets have a small trading time, and hence, its better to exit 0.5% early as on the targets, the stock just might remain for a very short time.

Exiting:
When you exit, either exit on target1, and wait for another dip to enter again; Or, enter at new supports; Or, hold on with a trailing stop; Or enter when the intermediate resistance given by target1 is broken. This is a choice, and depends on situation, feeling, and style of the trader. Never exit without any reason.

Hedging:
Always make a couple strategy if you are leveraging. If you are trading in cash on your own money, then you cant book loss until you wish to. Nobody can force you to do so. While you are leveraged, you should NEVER ignore the fact that markets may fall also. We don’t have to sit idle fearing a fall, but we have to trade and at the same time take some steps to insulate from the risks involved. For this, you can either take a shorting trade alongwith longs, or you may take a put of support level. While shorting, you may enter a particular stock future or any index. At times, there happens to be a situation where one of the twostocks rallies at a time. This happens due to a possible ongoing tug of war between the two companies. Recent example: RCOM Vs Bharti.

If you don’t have anything to short, you can take index puts of strike price of intermediate and basic support levels. You can choose to wait and take puts as and when you see the critical supports breaking. Ask your advisor about the index support levels.
Example: 5900 PUT.

The point being stressed upon is that always manage risks involved in trading. Markets are right, and if you have right strategies, you are going to make unlimited money.