Disclaimer


The author is a SEBI Registered Research Analyst (INH000004796) and a NISM certificate holder in Equity Derivatives Market. The certification is provided by National Institute of Securities Markets.

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Friday, February 28, 2014

28/02/2014


Nifty Gaped up and had the premium element too. IR formed within first 3 candles. Could not spot any trades most of the day. Went long on BOF IRL. Target was IRH

Wednesday, February 26, 2014

26/02/2014


Nifty opened near PDC. There was a MC which acted as IR. Long only on break of a long consolidation. TP at 6240. Uncharacteristic, Quiet expiry. Wonder what's in store??

Tuesday, February 25, 2014

25/02/2014


Traded BN BN gaped up but could not sustain. IR formed. Did not short after the sudden thrust below PDH and PDC as price stalled at the swing 10680. Went short on PBP PDC. TP near yesterday's median 10620.
Did not go long on break of MSP above 10680 as PDC overhead. Went short on BOF PDC. TP at 30 points.

Monday, February 24, 2014

24/02/2014


Traded BN. BN gaped down. Tried to go below BRN 10500 but failed. Long on BOF BRN. Was watching PDC closely. Expected it to cross due to order flow from trapped traders. TP at BRN 10600. Entered another long only after consolidation above range high.(although could have trailed the earlier position). TP at BRN 10700.

Friday, February 21, 2014

21/02/2014


Traded BN. BN gaped up. Took only one trade as BPB PDH. TP 45 points. FTC range high (line just below BRN 10600) could have been another short. Position had to be trailed though.

Thursday, February 20, 2014

20/02/2014


Traded BN. BN gaped down. After the initial down thrust, BRN resisted the further upmove. Went short after the pin bar formation at BRN. Covered at 10440 for 45 points. No more trades as was not feeling well.

Wednesday, February 19, 2014

19/02/2014

 
Traded BN. Opened within yesterday's range. IR formed. Thought of shorting as there were upper wicks around IRH. Shorted at 10580. TP at 40 points. Did not take the consecutive BOF. Went long on higher low formation after bouncing from PDC. TP at PDH.

Tuesday, February 18, 2014

18/02/2014


Traded BN. BN opened below PDH but did not stay below it for long. IR formed. Long on a small PB to BRN 10400. TP at BRN 10500. Long on BPB BRN . Trailed the position to TP at BRN 10600. Did not take any other trade as suspected a range.

Monday, February 17, 2014

17/02/2014


Traded BN. BN gaped up but fell below PDH soon. Whole day it was between too many levels as did Nifty
Only trade which I took was BPB IRH around 10300. TP at 50 points.

Saturday, February 08, 2014

NOT TRADING FOR THE WEEK


As I will be travelling and held up with a family function, I wont be trading on the above mentioned dates.
Will resume again from 17th Feb 2014. Have a nice trading week ahead and take care.

Friday, February 07, 2014

07/02/2014


Nifty gaped up and spiked. Took the first two candles as IR. Did not short below IRL as no space. Did not take the TST trade either as price got rejected at PDC. The move was sudden. Shorted as BOF PDH for a quick 20 points. TP after inside bar formation. Went long as BOF LOD/RN above RN for another 18 points.

Thursday, February 06, 2014

06/02/2014


Nifty opened near PDH and tried to trade above it. IR formed. Could not short on BOF IRH as the fall was very fast. Missed the entire move through the fluid. Did not take BOF trade as NS 6000 was resisting for a long time. Price race passed MSP and went long only on a PB. Went long @ 6018. TP @ PDC.

Wednesday, February 05, 2014

05/02/2014


Nifty gaped down. IR formed. Went long on BOF BRN. Stopped out next candle. Did not try BPB BRN there. Long on BPB on break of MSP. TP at 6030. Again long as prices did not break IRH. TP at RN 6050. No other trades

Tuesday, February 04, 2014

04/02/2014


Nifty gaped down below PDL. The first MC acted like initial range. Did not go long above IRH as no space because of BRN. Short on BOF BRN below IRH.Thought IRL would crack. Booked small profit. Did not attempt FTC as previous attempt to break IRL failed. Long on BO of BRN. TP AT PDL

Monday, February 03, 2014

03/02/2014


Nifty gaped down below PDC and was hovering around PDL for quite some time. Shorted as BOF BRN/IRH on break of PDL. Kept trailing position around IRL. Finally it broke. TP at 6060 as trailing SL hit. Another Short on BOF IRL. Target was the then LOD. Was trailing my SL as bias was already down. Saved by 1.5 points. TP at 6000 NS.

Sunday, February 02, 2014

Trading Lesson from a flying Cockroach


Cockroaches, usually viewed with disgust can be of trading help.
Below is a verbatim produce of a mail which I was going through over the weekend.
I find some relation in the story and trading which I have presented after the story.

The Story:
At a restaurant, a cockroach suddenly flew from somewhere and sat on a lady. She started screaming out of fear. With a panic stricken face and trembling voice, she started jumping, with both her hands desperately trying to get rid of the cockroach. Her reaction was contagious, as everyone in her group also got panicky.
The lady finally managed to push the cockroach away but it landed on another lady in the group. Now, it was the turn of the other lady in the group to continue the drama. The waiter rushed forward to their rescue. In the relay of throwing, the cockroach next fell upon the waiter.
The waiter stood firm, composed himself and observed the behavior of the cockroach on his shirt. When he was confident enough, he grabbed it with his fingers and threw it out of the restaurant.
Sipping my coffee and watching the amusement, the antenna of my mind picked up a few thoughts and started wondering, was the cockroach responsible for their histrionic behavior? If so, then why was the waiter not disturbed?
He handled it near to perfection, without any chaos. It is not the cockroach, but the inability of the ladies to handle the disturbance caused by the cockroach that disturbed the ladies.
I realized that, it is not the shouting of my father or my boss or my wife that disturbs me, but it's my inability to handle the disturbances caused by their shouting that disturbs me. It's not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by the traffic jam that disturbs me.
More than the problem, it's my reaction to the problem that creates chaos in my life.

Lessons for Traders:
 I picture my self as the waiter, my account as my client's account and the cockroach as a metaphor for the market/intraday volatility.The cockroach will in no way warn us of its appearance. Its appearance will be sudden and will be out of nowhere.Market volatility, likewise will not warn us. Due to some events, the otherwise calm markets may turn volatile and can catch us offguard. As a trader, I am managing my client's account(Assumed earlier) and the situation can be panicky. I can feel at a point of time to square off the position and sit out. But such decision can be a result of hysteria rather than anything else. 

Here what the waiter does is to be noted. He did not panic. He studied the movement of the cockroach calmly and when he is confident grabs the cockroach and throws it out. The two things here are: maintaining our calm and studying the movement. Maintaining calm is important as our next step should not be out of fear, it should be out of composure.

The second step of taking time and studying the market is equally important. If we are confident of the situation we can act decisively in such a case. If we calmly scan where the price is and use our trade management techniques, we can save ourselves from a rash trading decision.

Lets not be prone to hysteria, but work towards reducing it.