Over Trading

30032012

Some of the readers have asked me what is my pre-market analysis routine. Frankly I do not do any such analysis.I let the market open and negotiate the price action as it unfolds.I only pay attention to the immediate trader decision points above and below the open and try to trade these levels
Let me explain today's trades

Nifty gaps up just above previous two days range. Now previous day levels have no relevance.Opening price is just above 28-03 High. If the price breaks below it, Nifty may drift further down to 28-03 close..Nifty is in no mood to come down . Goes up and make a BPB of 27-03 close level.A signal to go long.Another BPB at 27-03 High level.gives a second signal.

My trading revolves around decision points. Acceptance and rejection of price in these areas decides the direction of trade. Always there will be a decision point  above and below current price and always market will be creating new levels.

Decision points are where fierce battles are fought.Sooner or later somebody has to win. Then you join the winning team.

It is very simple but not easy. Need a lot of experience. Slowly I am gaining it. 

29032012

Nifty Gaped down and traded in a range for a long time. BOF of the day low gave a long signal. A scratch trade. BOF of PDL gave a with the trend short signal. This one also failed to follow through. Another breakeven trade.

Emotional Baggages

One of the most difficult aspect of successful trading is dealing with the emotions.it is almost impossible to be emotionless as a human being. But if you experience extremely unpleasant emotions during setbacks and euphoric emotions on a big gain,be careful.

pleasant emotions are motivating at a moderate level,but extremes can be harmful.Extreme positive emotions will lead to impulsive decisions and abandoning of risk control methods. Likewise If you are frustrated and worried, you will not be able to concentrate and this will lead to incorrect and costly trading decisions.

If you search the web , you can find thousands of articles written about emotions in trading.Read some and You can find the root cause of all emotion related problems is "Living in the past".We carry the memories of past actions and experiences.Only solution is to start "Living in the present"

Stop worrying about what happened.If you have a good trading strategy,stick to it.Ignore the outcome of individual trades, Ignore CNBC, ignore the experts, ignore the gurus.

Leave your "Emotional Baggages" behind ,Trade your plan and strategy.It will take care of itself.

28032012

Nifty opened within previous day range. BOF of swing low gave a long signal. BOF of PDO gave another trade signal. A retest of this level also failed. One can skip the next two signals as the FTA was too close.

27032012

When the market opens within previous day range ,look to trade the trend of the previous day.Market was trading in a range yesterday..Nifty opened just above the range and sold. First trade is a BOF of range. Target low of the range.Market gave three other good opportunities today at good locations with good profit potential