Tuesday, November 29, 2011

Better late than Never

I missed out on writing the blog for a few days. then, I felt embarrassed at the absence and awkward in starting to write again. Therefore, more days elapsed, so more embarrassment and more days.

To break this cycle, I am writing this post to say that maintaining this blog is one of my favorite tasks each day. Not writing is my loss.

The Nifty

The Nifty has seen a spectacular decline and now seems to be making a trading range. Markets go through cycles of expansion and contraction. We saw the expansion process when the Index fell from 5400 to 4650. Now, we are probably in the contraction process.  It seems that a trading range between 4700 and 4900 may be developing. These boundaries are tentative.

 

Now, trading inside a trading range is NOT a profitable proposition. There may be day trades, or trades that sell at resistance and buy at support. Except these methods, trying to catch a trend when inside a trading range is a losing proposition. The trend can reverse many times inside these boundaries.

4 comments:

Technotrader said...

Nice to see u back sir. I am waiting for your blog to seek some advice. I am a positional trader in Futures. I would request you to put some light on how to take a position in such market, should we use 30 min/15 min or 60 min chart based on stochastic oversold/overbought to take position? or any other method, like decide the stop loss and take position on any decline towards stop loss. By trading from last one year I know that reading chart is 25% and trading is 75% of your total skill.
Thanks sir

GA said...

Good to see you realise "better late than never". Past couple of weeks, I have been visiting your blog and closing with disappointment. Can you cut your losses by giving regular insights on this blog?

Thanks,
Gopal

Vasant kumar said...

nice of u sir

jigs said...

I think either u r forgetting to update blog or you are vary busy, n not able to update blog but in both case loss is ours we miss ur valuable posts. Welcome back. If time permits than select a 30min in 12hour of day and for exm. 3.30 to 4.00 p.m. spare that for this blog.