Today's Performance

Nifty was choppy today without any clear direction evident. It closed below the low of yesterday, and wasn't able to break the high of yesterday. This means, it is unclear at this stage where the Nifty is headed. The general bias, however, is still down.

Today up until 12 noon, Nifty Futures was listless. It tried to break past the 100 sma after noon, however, faced stiff resistance and fell down convincingly to break previous day's low, only to make a late session recovery to head north.

Going by the overall downward trend approaching 12 noon, our Sell orders were activated, the moment Nifty Futures broke the Sell level. However, the downward movement could not take further steam and fizzled out just a few steps from TP1.

Then, it made an upward movement in leaps and broke past our Buy level. It continued its climb and almost reached TP4!

The question is: Should I have taken this late upward surge? Answer is a resounding NO.

Here's why: Firstly, it would have been against the overall trend and Secondly, price was below the 100 and 200 sma and only just crossed the 20 sma, when it broke our Buy level. If you have been  following my approach / strategy, you would have never traded against the trend.

In the long run, if you are honest and true with your strategy, you are bound to achieve greater success, as the Number 1 reason for failure in financial market is because of constant picking and changing strategies every now and then. Eventually, they end up losing money most of the times; and go permanently out of the market never to return again.

This is a business like any other. Requires immense patience, discipline and mechanical focus, to achieve more gains and few loses, in the long run. That's how you build your equity.

Profit for Today's Signal: 4 lots of 5300PE bought @ 18.5 per unit. Exited all 4 lots @ 16.5

(4 * 50 * 16.5) - (4* 50 * 18.5) = 3300 - 3700 = -400

Gross Profit % = -11%

Quote of the Day: Cut your losses short; and let your Winners run.

I'm interested to know how you would have approached the levels I gave out today. Write into daytraderbt@gmail.com

See you again tomorrow. Hopefully, will see better action.

Have a good one, Everyone...

Cheers!

DayTraderBT