Biggest mistake which trader does is to make frequent trades-thinking that they will miss a good move- if not hurried - In that process, we end up making broker rich- Hope all agree with me.
Until yesterday & infact today till morning I had a bias, but frequent trades which I did today of changing sides from bull to bear was my biggest mistake.
In the morning 19080 once hit & jumping into sell trade near 19085 with stops@19115 (Thanks, I had stops of 19115) -was a frequent change of the side because my bias changed easily & forgot to confirm-which I always do while trading rather than taking trades frequently.
Real Life Lesson
Whenever you feel that you got into wrong train- will you jump out of running train!- ask yourself- so it is with trading as well. Patience- become captain cool (So, I admire M.S.DHONI) - Get out at the next near by station & take a pause -decide which is the right direction-think about new plan & then execute.
From the highs of 19202- the move happened was down to 18981- then pushed up to high@19277-later sharp fall to 19045-day’s low@19thJan2017- Looks irregular corrective move & so my bias was positive for last 2 days & still have positive bias which will confirm once BN starts moving decisively above 19185 –current day’s high.
A decisive move above 19185 – Shall be looking for new highs beyond 19277.
Going below 18980 shall be slip to 18840-18860 zone -next cluster zone downside -keep in mind on top should not move immediately above 19050 levels
Bounces back close from the cluster zone of 18840-18860
Entering below 18875-18870 -likely will make new lows.
Avoid Selling Likely there is a strong support zone in 18840-18860 which can hold BN. We will book all Intraday -wait at the sidelines for a new fish
BN going below 18800 can retest day's low@18725 & slightly below.
We will exit here as BN down move looks doubtful as Nifty looks to hold in the zone 8350-8360
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ
I am also a full time trader and trades only banknifty.
I would like to add one thing that- There is no person alive or in history who is hundred percent correct or who has never given a STOP LOSS in the business of speculation. Its a part of trading.
Your analysis is good and useful in daily trading. Keep doing your good work.