07012013

Nifty opened near PDH and sold. IR formed. BOF of IRH gave a short signal. Se coned signal was a long trade BOF of IR low. This trade did not move. Nifty was forming a cigarette pattern within a 10 point range. Breakout of this range gave a good move.

Think Different

Trading requires a different thought process. Logical thinking process will not work well in solving trading related problems. A logical process requires a well defined existing knowledge base to build on. As far as trading is concerned most of the time this knowledge base is vague, irrational and ill defined.

Scientific methods also will not work well. Scientific methods of problem solving start with defining all the parameters of the problem in order to define the solution. This is simply not possible as there are too many variables

Trading requires a creative thinking process. We need to create new knowledge base and approach the problem differently than we have done before. This requires understanding the context, generating new insights and rationally analyzing the various options.

We need a solution based or solution focused thought process. Solution is really the starting point. Problem solving starts with a solution and then moves back to define enough of the parameters to optimize the path to the goal. In other words it starts with the goal or what is meant to be achieved instead of starting with a certain problem and trying to solve it.

You may call this a kind of reverse engineering. Decide upon the kind of move you want to capture and study those moves. You will be able to define enough variables that triggered those moves. Think rationally and apply a “Common Sense” filter on those and focus only on those which are really relevant.

04012013

Nifty opened within Previous day range and sold. Went short on BPB of PDL. Scratched the trade when it failed to extend beyond Breakout bar. BOF of PDL gave another short signal. another scratch trade. Even the BOF could not move price to LOD. Went long on the breakout of swing high with a stop below PDL.

03012013

Nifty opened above PDH and sold. Moved within the previous day closing range the entire day. Went long on BOF of TRL/IRL and TST of PDL with stop below PDL. Did not take any other trade. Critical mass is long in the market. Tomorrow being week end if they decide to exit there can be a big fall.

02012013

Nifty gaped up above PDH. IR formed. Went long on FTC below IRL. . Next one was a short trade on BOF of IR High. This trade did not move as expected. Scratched it.

01012013

Nifty gaped up above PDH. Expectation was a channel move after the spike. But hesitated due to the Big Big BRN 6000. IR formed. FTC above BRN/IRH gave a short signal which did not move. Another BOF of this level also did not help. Finally stopped out of the trade.