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Breakdowntrading

Mahi Mahi: If A Stock Is Down 2%, It Can Be Down by 4 %That's true..down 2% doesn't mean it can not go down further. But the conditions are that: It should be in a strong downtrend on a higher time frame; and we should have proper tools and system to manage our trade. 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 Ichimoku 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 bearish 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 doji pointed in the chart had a nice volume but price was able to breach only a few paisas above this doji, 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. Regards Bravetotrade
NSE:M_MEducation
by Bravetotrade
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