in one single day
the market does a hundred things
and makes a trader do a hundred and one!
right?
wrong!!
--
market just does at most
3 things
in entire day!
--
i studied minutely
nifty movement for 27 trading days
from 7dec2010 to 13jan2011
and here is what i found
--
10 out of 27 days
whatever first direction nifty took at opening
it moved in the same direction
for the entire day!
--
13 out of 27 days
nifty changed the first direction
and then kept moving that way for the rest of the day!
--
and only for the rest of 4 days
out of 27 trading days
the market changed direction for the third time!
--
never did the market change its direction
for the 4th time!
--
the first direction
was taken typically between 9.15am and 11:30am
--
the second direction
if taken
was taken typically between 11:30am and 1pm
--
the third direction
if taken
was taken typically between 1pm and 3pm
--
sowhat does it mean?
--
first, we don't need to
keep criss-crossing the heavy traffic
trading street like a confused dog!
just 1 or 2 or at most 3 shots are enough
....if carefully chosen!!
--
when you have rightly identified a direction
just fill it, shut it and forget it
till the next direction change
if any!
--
and if the second direction-change happens
just relax
and expect it to be
among the 23/27 times when there is no third direction!
--
and of there is the third one
book profit for the second one
take the third trade
leave the terminal
pick the coffee mug
and go relax in the garden till 3.25pm.
then book the profit for the third trade
and wait for the next sunrise!
--
give the profit time to grow.
don't panic at market's 100 bluffs!
only 3 are genuine!!!
1 comment:
Very god analysis Jagmohanji, I fully agree with you. If one can keep ones mind cool and act per your analysis is definitley going to win. Only quick reflexes and strong conviction in your analysis are required.
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