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 bullish 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.
Trading Strategy A decisive move above 19185 – Shall be looking for new highs beyond 19277.
Previous Analysis
Trade active
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12:12 Hrs 20th Jan2017
Last price@19001
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
Trade active
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13:28 Hrs 20th Jan2017
Last price@18907
Day's Low@18867
Bounces back close from the cluster zone of 18840-18860
Image
Trade active
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13:41 Hrs 20th Jan2017
Last price@18887
Entering below 18875-18870 -likely will make new lows.
Trade active
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14:02 Hrs 20th Jan2017
Last price@18868
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
We will exit here as BN down move looks doubtful as Nifty looks to hold in the zone 8350-8360
Comments
digi_anki
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u said walking on wrong train is sometime good .....did u mean keep running loss is also good....?
WaveTalks
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@digi_anki, I guess you got it wrong- when you feel that you have taken a wrong train- will you jump out of the train immediately- either ways as you have taken a wrong train -you will have to take some losses & market can't be moving in one direction-it will give you exit close to your wrong entry where you can exit the trade. Take a pause- decide for future plan & later execute in a fresh manner.
sanjivt
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Covered Bank Nifty shorts as wave 4 is more or less done....starting to add calls....expect 19500 to be crossed in Feb as the final 5th unfolds
Banknifty
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Nice analysis and words written by you. Keep it up.
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.
bbhalaji
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Thanks again for sharing this valuable lesson Abhishek. Emotion is the biggest enemy for traders, sadly.