April 7, 2015

NIFTY futures intraday charts

- initial bias weak
- initial short trade and subsequent long trade was loss making
- increased SL to low of breakout bar for a long position and vice versa
- alternatively look for fast reversal of a large breakout bar as a strong warning sign.
- last long trade was profitable but I lost money here.

Today I lost money in a rather stupid way. My first long trade was a whipsaw... this is fine as whipsaws are a part of the game and you are prepared for this. But the second long trade should have ended in fantastic profit but I exited at a tiny loss. Funnily the SL did not get triggered at all but I guess looking at the volatility I was motivated to exit around 2.30 simply because of the big red bar. The subsequent overlapping bars did not generate confidence to re-enter.

The funny part is my fast exit in long trade limited my losses while the same rule prevented me from running the profitable trade till the end. But if I had simply kept the SL using swing method then the first trade would have given a large loss which would have been recovered in the second long trade.

Fortunately my position size was small (300) so losses were managable and under 10K.

No comments:

Post a Comment