stock or indices
can move in the following three ways only
1. gap opening (overnight movement) only
2. intraday movement only
3. gap opening + intraday movement
the second type can be managed by the ways mentioned in my post
"high probability entry/exit points"
the first type is slightly difficult to catch except with btst/stbt
positions (not easy to predict - trying to crack the code and will
share with you)
another way to catch the first type of movement is thru swing trading
the third type of movement can be further divided into 4 sub-types
a) small gap opening, big intraday movement
b) small gap opening, small intraday movement
c) big gap openinig, big intraday movement
d) big gap opening, small intraday movement
can't do much about b) and d)
c) is rare but profitable
a) can be most profitable
how
with the ways mentioned in
"high probability entry/exit points"
remember 80% of the gain happens from 20% of the opportunities
meaning thereby,
that we should not trade like a salaried trader
but like a businessman trader
and trade only opportunity.
we have no boss to answer except
ourselves
and wife!
happy trading!
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