Wednesday, October 12, 2011

Nifty Live Oct 12-11

Here is a description of my Nifty trades for today. Pre-Market, I expected the Nifty to gap up and stay up. This means I was looking for a trend day. Well, the Nifty did open higher with a gap. It then started a move up. I went long at 5034 and 5022 (on a dip) (Values are for October futures). My stop was the day’s low at 5006. If the market is to go up, then the low should not be broken. Futures rallied nicely to 5060  then IIP numbers saw the Nifty dip to 5022. My trade continued. We saw another rally to 5066 then a sharp and sudden decline saw the Nifty fall below 5006. I was stopped out. I was convinced that we were looking at a trend day, but the trading must be done with discipline, so I was stopped out. There was a reentry plan. I would go long again at 5066 which was the day’s high (till then). It would be a breakout trade, but I have to take it since the intra day charts were upbeat.

The Nifty started a rally, I went long again at 5066, then exited the trade at 5115 – almost at the close of the day.
Lessons learned:  (1). Follow your plan.   (2). Trade without tension. – If I were in tension, I would have made any number of mistakes. The reason I am not in tension is due to control of my trading volume. I still make mistakes – many of them – but at least I am not in tension.
A bullish head and shoulder in the 60 minute chart, suggests a breakout giving a target of 5350 approx. Well, the markets will and do surprise us.

7 comments:

Tarique Anwar said...

Thanks for sharing this. Its mandatory to have a plan. I have a question, should we also have targets apart from stop loss levels?

mbansalicy said...

one thing i missing in your trading plan is trailing stop loss.when u go long at 5034 & 5022 & nifty went to 5066 then you have to trail your stop loss.because this is intra day trade.
awaiting your thoughtful views.
thanks in advance.

Sethu said...

Dear Sir,

I am following SAR method which gave a buy trigger at 4850 . I put sl the previous day close - 4974. I booked 50% and as per my system ST reversal is only below 4970 , EOD system level relevant for tom trading. Below this level shrots can be initiated. This gives me fantastic profits. To be frank with you, I carry no tension.

Nikhil said...

Also, one should keep trailing stop loss

Rushabh Shastri said...

while trading with nifty keep an eye on INFY,RELIANCE, SBIN ...these all three big gun fire....AND sbi had a news of RECAPITALIZATION and INFY good result....that is why you must be thought that THOUGHT your stop loss hit...you were convinced that TREND IS UP.....but ITS ALL ABOUT DISCIPLINE and that is the game of rule which you followed and that is why still you are in the game,,,,CONGRATS

Technotrader said...

Exellent sir, I am trying to learn from your posts

Sahil Singla said...

Greetings Sir!
First of all thanks a ton for sharing your trade plan on 12oct.

My Question is: On what basis you made a view that after a gap up, nifty will stay up and may follow trend day.?

Was the basis of your assumption TIME? like half an hour or 45min, after which you made a view that now nifty could stay up(since gap was not filled by then).

Would appreciate your reply on this.