M&M has been in a strong downtrend on Daily, 4H and H. So I thought it could be nice short. But by the time I could open my lappy, stock was already down 2%..how lame.
I opened up my System and saw that stock had given a fresh break down below the cloud with higher volumes on 15 min chart (See candle A) and it was already in territory on higher time frames. All I need to do was to find a better opportunity to enter.
Candle B went deep into the cloud and then sold off quickly. I placed a sell order below the small swing @ 1319.50 and got hit in the very next candle C. My initial stop was above the high of candle B.
Then I kept on trailing. The pointed in the chart had a nice but price was able to breach only a few paisas above this , and I was not stopped.
# I always give some room above the high of the candles when I trail so that I am not hit easily.
Finally I was thrown out of the trade @ 1303.60. It was a nice 16 point trade or 1% of the stock value. Whenever I get 1% of the stock value as profit I call it a good trade. Without a good system in hand, I might not have touched the stock.
Above trade does not mean that I dun lose. I had a small loss in SRT buy, which I covered later in the session by shorting it. Sometimes it takes time for daily trend to clarify itself. I was breakeven in Tataglobal and you all know about Mindtree :)
The above experience would definitely help me to be more disciplined in future. I hope the same for all traders.
Have Fun, and happy weekend.
Hit like and comment.
Our society has also inculcated a habit in us to follow the herd, but in trading by doing so we risk a lot.
I think we should change the way of upbringing the new generation if we want better traders in the future so that they don't face the same problems we faced :D
What do you say??