March 19, 2015

NIFTY intraday spot charts

- Breakout above last 2 days high forced me to go long in first 10-15 min
- I was aggressively long but was forced to square off at a small profit as nothing happened AFTER taking a position
- Observe the candlesticks in first box (upper tails indicating selling)
- Did not initiate any short trade on break below first box as my bias was bullish and expected markets to be buy on dips
- High of second box and third box look similar in spot but there was a difference in futures chart.
- Went long on breakout above second box (futures) but covered immediately as nothing happened
- Break below 2nd/ 3rd box low was a short signal which worked well...

NOTE: in all these trades, pay attention to what happens AFTER you take a position. If nothing happens for 8-10 bars then something else is happening and so be prepared for a reversal.

In all these trade and futures, it does not matter whether you were right or wrong. This is very important to understand if you want to be a good trader. What is very important and this will determine whether you make money or not is what did you do when you were right or wrong?

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