one of the ways to trade in uncertain waters

as i said, markets are not deterministic, they are probabilistic.

we know, to a reasonable accuracy, what the counting outcome if 4 state elections is going to be.

but only operators know what they plan to do on monday and thereafter.

in such a situation (and such situations keep coming often) tactics is what comes handy instead of guesswork (guesswork will be wrong for the majority howsoever brilliant they are).

e.g. in current scenario, take any position, long or short. but keep stop loss.

but since the movement can be so sharp and overnight that stop losses may not be allowed to touch.

the best solution to this is = options.

buy either call or option (you can also write / sell them but that shouldn't be attempted by amateur shallow pocket traders, though that is less risky)

e.g. if u buy a call of 40 points, a hundred point pro move will take it to 80

a hundred point adverse move will take it to 20.

you gain 40, you lose 20.

a 2oo point pro move will take 40 to 150

and a 200 point adverse move will take 40 to under 10.

here, u gain 90-100, you lose 30.

trading's second big lesson i have learnt is that there is nothing called "profits only" market.

markets will always be made uncertain/unpredictable by the operators.

so, almost 50% loss (u can try and bring it down) is assured, but how u profit from the rest 50% is all that matters.

in the above example, if u gain, great!!!

but what if u lose?

no problem.

play again. do it again.

by law of probability, you will make good money in the medium to long term.

why?

because ur wins will be 50% in terms of total trades but always much larger than losses in terms of amount.

but u can do it only if u have stomach of steel and have well managed finances.

there are many other such tactics which can be used.

but even this seemingly easy money will sweat and squeeze the guts out of you. any gain will be well earned!!!