30052013

Expiry day. Usually I stay out. Today tried just one trade that ended as a stop out. I shorted below the BRN on TST of PDH and BOF of range high . I expected it to go to the range low MSP

29052013

Nifty opened within previous day range. IR formed. Went long on BOF of IR low. Scratched this trade. Did not have the confidence to go long on BOF of LOD. Did not get any other opportunity

28052013

Nifty opened within previous day closing range. IR Formed. BOF of PDH gave a short below BRN and MC. My first target was MSP/DO. When it broke this area I thought there could be another leg down through the Fluid.Covered on BOF of the area. Long above the Tight trading range . TP at BRN.. Did not attempt the BOF of HOD and later BOF of BRN

27052013

Nifty opened within previous day range and spiked above PDH. Did not attempt a long as nifty had moved more than 40 points and I expected a consolidation. Made a Cigarette pattern. BO below the range low failed. Went long on the the break of range high which moved very well. due to stop triggering.

If and Then

My trading revolves around Decision Points and Price Flips. These levels create a framework or structure within which the price moves. There is nothing special about these Decision Points. These levels are good old support and resistance levels where majority of the traders act.

What is there in a name?  In fact the name matters a lot psychologically. I have written about it in an earlier article (Read). If we call a particular level “Support”, our mind automatically perceive the level as a buying zone. Here we start looking at the market in absolutes and will find reasons and patterns to go long, where none exists in reality. Further if something happens contrary to our expectations we are taken off guard and we freeze.

Trading is a mental game where we have to be flexible and dynamic all the time.. We must be able to quickly change our views as the Market changes. If we hold a fixed view it is not possible to process new information objectively. Our mind will block or misinterpret the information in support of our belief.

Trading is all about developing scenarios. Instead of seeking certainty, think “If and Then” possibilities. Hold opposing ideas in mind and be ready to change your bias as and when the price action unfolds at the hard right edge of the chart.

Now, do “Decision Points” make sense to you?

24052013

Nifty opened just above BRN and sold. IR formed.. Skipped the BPB of IRL as the entry was at PDL.Went long on BOF of PDLThis one moved well.. I expected the BOF short of DO-HOD-BRN to be a winner, but it did not. Did not attempt the BOF of range low.