Friday, September 2, 2011

Have a view before markets open

Day traders / short term traders should have a view on market movement before the market actually opens. How will it be like today? Should I expect (a) trend day, (b) volatile day with tradeable swings (c) a narrow range day (d) choppy day where the swings are not likely to be tradeable, or (e) an unknown day with no clear advance indications.

A lot of days will be unknown (e), which is fine because often there is no clear indication to trade. On such days, do not trade that instrument. Trading is done on (a) and (b), and avoided on other types of days.

Today, Friday, I expect (d), so little or no trading in Nifty until patterns emerge intraday.


Sethu said...

Of late, Indian markets have become volatile. I feel it is better to react real time. Dear sir, to be frank with you, I have devised a system which gives me trigger for exit and long. This is done after three years of back testing the data. Of course, once I enter i put the sl. I am happy to say that my sl is hit only a few times.The gains are huge. I use charts only for confirmation and booking profits near support/ resistance. The latest long was enetred at 4872 and now i will book the long based on resistance. Very simple but very effective. No indicators , not lookig at global cues, etc.

RS said...

Thank You Mr. Sudarshan. Your mentoring in so simple way is very much appreciated. I am not sure if you conduct mentoring classes/seminars - if yes I would like to know the details.

Thank You,
Rigel Sec.

jigs said...

Sir bang on target again

jigs said...

Gold too....on ur way, keep teaching sir.

jigs said...

Gold too....on ur way, keep guiding sir.

amarjeet said...

respected sir,
i m very thankful to you.because with the help of you now i m trading confidently.i m new in market about 6-7 mnts.firstly I see CNBC i think news moves the market.this is pure gambling.i lost some money.but one day see u et now.taking ur picks which r rigth.then i think i m also read charts.reading ur blogs which give me confident.join books from vision.sir realy u give advice &knowledge like elders&friends.GOD BLESS U.

Sasi Uppuluri said...

Sir, I have observed that the 1st 5-15 mins will decide the type of day. The volume price action in the 1st 15 mins says a lot of the day that's going to be.