Thursday, December 29, 2011

A Position Trade

As swing traders, we keep on taking  trades which are in harmony with the short term trend.  These trades last from a few hours to a few days. However, the market is controlled by the larger trend. It is wise to maintain a position that goes with this larger trend. Such a position is called (by me) as a Position Trade. These trades will last for weeks to months, although I may enter and exit a few times while the larger trend is continuing.

As of now, I have a Position trade in the Nifty which is a short position, taken at 5200 and then added to at 5000. The stop loss for this trade is currently at 4800. The trade continues, since the Nifty has not yet closed above 4800.

As time goes by and new patterns form on the end of day Nifty chart, the stop or even the basis of the trade may change.

5 comments:

Bashu said...

It seems that position was opened around 7th Dec and it is still open on F&O expiry day.

Did you trade in Dec or Jan F&O?

Bharat Thakwani said...

thanks for the swift reply sir...

piyush said...

DEAR SIR,
i am following your positional trade since september with a target of 4000,
any idea how long more to sit tight

Unknown said...

your shor position from 5200, than nifty make a low 4540 than why u don't cover ur position at this level or 4600 .what's ur target.

Neeraj Malhotra said...

Though unrelated to this post, I just received your book today and started reading it.

My suggestion would be to start a separate post for comments/queries on the book if it sounds like a good idea.

Thanks Sir
-Neeraj