Thursday, November 21, 2013

What is behind you is not important

Life flows. As does trading. What we did or did not do is not important. What we have left behind is gone forever, never to influence us, in the future.

Here is an example of what I am trying to say:

We (I and my fellow traders in my office) have been upbeat on the Nifty. When prices stalled around 6300, we felt a correction or dip was coming. Corrections are quite difficult to trade, so we closed our long positions and stepped aside. On 30 minute charts, a clear head and shoulder was visible. We shared this pattern and its target with our newsletter readers but did not take the trade, although as per our rules, we should have taken with lower volumes. As it worked out, the Nifty fell all the way to 5974. But, we were out.

Then, we said the Nifty is at a strong support level so we should go long. Long positions were built in the 6000 area, and, with two gap ups, there was a 150 point gain in this trade.

Yesterday, we were watching the Nifty as it suddenly started falling. We kept watching as it fell 200 points by today afternoon. All of us were tired after working for four days in my daughter's marriage. Our reflexes were poor and we did nothing.

Of the three possible trades we got one. But, we now look for tomorrow, rather than think about what we could have done. What is behind us is not important.


oraclehelp said...

Well said Sudarshan Ji

Suresh said...

Extremely important your information..
I love the way info market analysis even a laymen a understand...