Near Term Trend: ↓ (Down)
Market update: After yesterdays sensation pull up in last hour, Nifty opened below 10900 again and traded weak whole day. It even touched sub 10750 levels momentarily before recouping some of the losses and closed at 10790 levels (down 120 points).
We have been saying for long that 10900 -10920 seems like the threshold for Nifty on the upside and that market trend still remained down even after the 100+ point recovery yesterday in late trade. I had also mentioned in my yesterdays post that "if market has to reverse then it has to reverse now there is not much time remaining" and we had a down move of 120 points today itself which proves that our chart reading and wave counts are more or less in right direction and for now we will stick to that.
Technically speaking, seems market has completed the G leg yesterday. It took exactly 4 days like the F leg now lets see if we can see a faster retracement of same in same or lesser time (which translates to Nifty breaking 10530 levels in next 3 days). However lets not think that far ahead and we should be taking each day as it comes. Today our immediate target was a close below 10810 and we achieved that as market finally closed at 10792 levels ( there were few attempts by bulls in the late trade to take Nifty above 10810 but those were not successful).
We had initiated a short trade yesterday (in just half qty) but exited later with a small loss. However today again we entered shorts around 10840 (full trade) and still carrying the same.
Now slightly off topic, regarding yesterdays trade, many are writing me saying that we should have continued with our shorts yesterday. let me just reiterate, I never recommend carrying a trade if I am not convinced by the market movement or it is not moving as per my expectations. I am not afraid of exiting and booking small losses (and so shouldn't you). I am not a day traders and my aim is not to take 30-40 points. As a positional trader my aim is to catch the broader trend of the market and then ride along with it and if I lose 50-60 point in the process then its absolutely ok with me (in fact this is something I will gladly accept any day). I understand its not easy and need lots of patience and a cool head so if you want to make money in stock markets then please start being mentally tough, keep a cool calm head always and don't worry about taking small losses. Waiting game in stock market can be dangerous when you know you are wrong then u have to exit ( no exception to this rule) there is no point in waiting because if market catches you on the wrong foot then it will wipe 100% of your capital in no time.
Overall 40-50% of my trades are wrong and will always be wrong, but my profits are 50-100% time bigger than my losses. Meaning my wrong trades will cost me 100 points but my right trades will give me 150-200 points. So in long run I will always be in profits (even if I am wrong half of the times). Cut your losses short and let your profits run. If someone is expecting "100% sure shot calls each time" then I am definitely not the right person.
Trading recommendation: I have been advising exit from long position since last few days and still say the same. This is not a market to carry long, exit longs if you are still carrying. As far as our position we are concerned, we entered shorts today (like mentioned above) @10840 and still carrying the same. Need to observe market movement for next 2-3 days to decide our future course of action.
If you wish to join us on whatsapp then please follow below link, its just a limited period offer and will soon be revoked.
http://niftywaveindia.blogspot.com/search/label/Announcement-Join%20us
Market update: After yesterdays sensation pull up in last hour, Nifty opened below 10900 again and traded weak whole day. It even touched sub 10750 levels momentarily before recouping some of the losses and closed at 10790 levels (down 120 points).
We have been saying for long that 10900 -10920 seems like the threshold for Nifty on the upside and that market trend still remained down even after the 100+ point recovery yesterday in late trade. I had also mentioned in my yesterdays post that "if market has to reverse then it has to reverse now there is not much time remaining" and we had a down move of 120 points today itself which proves that our chart reading and wave counts are more or less in right direction and for now we will stick to that.
Technically speaking, seems market has completed the G leg yesterday. It took exactly 4 days like the F leg now lets see if we can see a faster retracement of same in same or lesser time (which translates to Nifty breaking 10530 levels in next 3 days). However lets not think that far ahead and we should be taking each day as it comes. Today our immediate target was a close below 10810 and we achieved that as market finally closed at 10792 levels ( there were few attempts by bulls in the late trade to take Nifty above 10810 but those were not successful).
We had initiated a short trade yesterday (in just half qty) but exited later with a small loss. However today again we entered shorts around 10840 (full trade) and still carrying the same.
Now slightly off topic, regarding yesterdays trade, many are writing me saying that we should have continued with our shorts yesterday. let me just reiterate, I never recommend carrying a trade if I am not convinced by the market movement or it is not moving as per my expectations. I am not afraid of exiting and booking small losses (and so shouldn't you). I am not a day traders and my aim is not to take 30-40 points. As a positional trader my aim is to catch the broader trend of the market and then ride along with it and if I lose 50-60 point in the process then its absolutely ok with me (in fact this is something I will gladly accept any day). I understand its not easy and need lots of patience and a cool head so if you want to make money in stock markets then please start being mentally tough, keep a cool calm head always and don't worry about taking small losses. Waiting game in stock market can be dangerous when you know you are wrong then u have to exit ( no exception to this rule) there is no point in waiting because if market catches you on the wrong foot then it will wipe 100% of your capital in no time.
Overall 40-50% of my trades are wrong and will always be wrong, but my profits are 50-100% time bigger than my losses. Meaning my wrong trades will cost me 100 points but my right trades will give me 150-200 points. So in long run I will always be in profits (even if I am wrong half of the times). Cut your losses short and let your profits run. If someone is expecting "100% sure shot calls each time" then I am definitely not the right person.
Trading recommendation: I have been advising exit from long position since last few days and still say the same. This is not a market to carry long, exit longs if you are still carrying. As far as our position we are concerned, we entered shorts today (like mentioned above) @10840 and still carrying the same. Need to observe market movement for next 2-3 days to decide our future course of action.
If you wish to join us on whatsapp then please follow below link, its just a limited period offer and will soon be revoked.
http://niftywaveindia.blogspot.com/search/label/Announcement-Join%20us
No comments:
Post a Comment