These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.After a breakout is sustained, for a day, it seems logical to draw up the next mathematical target. This time it falls around 4860. Our anticipated high closing for the derivatives expiry this month has come true.
With many short term cycles coming into play, the next two trading sessions, Friday and Monday, would be important. Monday could possibly be a short term high.
At this stage people would be tempted to short. To those people, all I can suggest that trying to catch tops or bottoms is a luxury which disciplined traders had better avoid. The business of trading does not earn money by “predicting” tops or bottoms. But to decide what the trend is and to take a slice of the action, by trading in the direction of the trend.
I think that I should stop carrying my traders’ anthem, “Plan your trade, and trade happy”. People have read it so many times that they have become immune to it.
1 comment:
Sirji, its just that i had been shorting since a long time... also, when mkts fall 2000 pts and we just buy dips, wasnt very palatable to me (and i am sure many others wud have become bearish too)
what i have been trying to do is try and get generated 2 types of strategies from you. however, u have been trading for 20 yrs and i have been trading for 2-3. so u r more seasoned from all respects and therefore never suggested to short... i guess i will have to learn to buy the dips in place of also an added shorting... i am sure there are many new traders like me, who must have also benefited from lessons and comments...
reg
ketan
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