Wednesday, February 10, 2010

Kneel and Jack (Day Trading Technique)

Here is another simple Day Trading technique i have been using since long with high success rate.

Many people use this technique consciously / subconsciously in part or full.

Although people use different names for it, I call this technique as

"Kneel and Jack"

Before explaining this simple technique, let me share what i mean with 'kneel' and 'jack'.

Have you seen a slave kneel before his master?....now u know the 'kneel'.

Have used a jack to change the car tyre?....now u know the 'jack'.

Now i share this 'kneel and jack' technique.

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Lets assume the nifty had started an unmistakable up-trend yesterday.

It was, therefore, expected to continue to rise today.

But,

due to temporary news-based weakness in global markets, it opens with gap-down!

in other words, the slave 'nifty' has been "kneeled" by the master 'global markets'.

Buy nifty on opening under this situation.

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Similarly,

Lets assume the nifty had started an unmistakable down-trend yesterday.

It was, therefore, expected to continue to decline today also.

But,

due to temporary news-based strength in global markets, it opens with gap-up!

in other words, the slave 'nifty' has been "jacked" by the master 'global markets'.

Short nifty on opening under this situation.

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