Hi frns,
So yesterdays history repeated again. Nifty surprised everyone by giving a gap down, even surprised me coz SGX was trading @ 3040. So I waited waited waited till the so called bearish rally end(remember no trend lasts for ever). Trading Insight- Don't jump in rally and have patience till support and resistance are reached. Don't enter the trade for the sake of trading at every minute of the Nifty trading day. Take example of Sachin, How he plays....He waits initially to read the pitch, the pace of the ball and when things go fine Bang!!!!
So how to read the stock markets pitch???
As I mentioned earlier its game of support n resistance. 2964 was Nifty support, chk iCharts ShoutBox archive I have shouted(i mean spoke) that 2994 and 2964 were support and 2950 being the major support. So today I waited for the nifty to give signs of reversal. Notice here that 2964 support doesnt mean that trend will reverse from 2964 only. It may reverse in the range of around 5-10 points plus or minus. So it made days low @ 2965.70 and reversed.
And yesterdays history got repeated.
A new concept- so todays graph went fine till 3040 but we got a catch in the middle.
Now this is a classical example of a falling wedge. But to trade this in advance u need to have some trading psychology and guts. I mean to say if you are long from morning and your concept are clear that this uptrend will continue u can take some chance. Even you don't take chance you can alwayz trade this wedge. Falling Wedge is highlited by the two red lines joining top and bottoms. In upmoves these wedge are most common and they are lovely to trade.
When to enter Wedge - Just when the candle breakout this wedge. And today Nifty gave us a Perfect wedge to trade. It broke out of that wedge and gave us the moves to 3060 so even if you enter at wedge breakout it will give you a hefty 35 points. Now this is serious money 35 pips!!!
Please understand stock market is a serious game where you are against many smart people.
Ask any broker Nifty in a normal day gives a 50-60 points range for traders. So if you are at beginners level try to catch 20-30 points first and be happy for the day that u make money. 20-30 points means 2-3 thousand in a day. So who doesnt want to make this money consistently and regularly. Ok so my idea of telling all this is that normal days will give you 50-60 points move so you can estimate broadly what will be your target. For example today suppose (don't suppose it really was) it was in my mind that trend will be bullish so from reversal I got a target of anything above 30 points unless there is some major bad news which could turn the market.
So once you join the rally keep trailing the stop loss. Now in trailing stop loss i'm not that perfect but you can trail stop loss flag by flag(remember my two flag rule) or if you are good at spotting support and resistance you can place sl once the resistance is cleared for e.g 3000 was a resistance and so on. Stop loss ensures that the profit you made in a day does not get wiped out if trend turns agains you and you'll still get your decent return on money as well as time.
Hope you loved reading it.
One more thing do share your experience and strategies.
Happy Trading.
As I mentioned earlier its game of support n resistance. 2964 was Nifty support, chk iCharts ShoutBox archive I have shouted(i mean spoke) that 2994 and 2964 were support and 2950 being the major support. So today I waited for the nifty to give signs of reversal. Notice here that 2964 support doesnt mean that trend will reverse from 2964 only. It may reverse in the range of around 5-10 points plus or minus. So it made days low @ 2965.70 and reversed.
And yesterdays history got repeated.
A new concept- so todays graph went fine till 3040 but we got a catch in the middle.
Now this is a classical example of a falling wedge. But to trade this in advance u need to have some trading psychology and guts. I mean to say if you are long from morning and your concept are clear that this uptrend will continue u can take some chance. Even you don't take chance you can alwayz trade this wedge. Falling Wedge is highlited by the two red lines joining top and bottoms. In upmoves these wedge are most common and they are lovely to trade.
When to enter Wedge - Just when the candle breakout this wedge. And today Nifty gave us a Perfect wedge to trade. It broke out of that wedge and gave us the moves to 3060 so even if you enter at wedge breakout it will give you a hefty 35 points. Now this is serious money 35 pips!!!
Please understand stock market is a serious game where you are against many smart people.
Ask any broker Nifty in a normal day gives a 50-60 points range for traders. So if you are at beginners level try to catch 20-30 points first and be happy for the day that u make money. 20-30 points means 2-3 thousand in a day. So who doesnt want to make this money consistently and regularly. Ok so my idea of telling all this is that normal days will give you 50-60 points move so you can estimate broadly what will be your target. For example today suppose (don't suppose it really was) it was in my mind that trend will be bullish so from reversal I got a target of anything above 30 points unless there is some major bad news which could turn the market.
So once you join the rally keep trailing the stop loss. Now in trailing stop loss i'm not that perfect but you can trail stop loss flag by flag(remember my two flag rule) or if you are good at spotting support and resistance you can place sl once the resistance is cleared for e.g 3000 was a resistance and so on. Stop loss ensures that the profit you made in a day does not get wiped out if trend turns agains you and you'll still get your decent return on money as well as time.
Hope you loved reading it.
One more thing do share your experience and strategies.
Happy Trading.
No comments:
Post a Comment