27062013

Usually I stand out on expiry days.Today took one trade.Nifty gaped up above the PDH. Did not channel. Drifted down. Long on BOF of PDH/IRL. Quickly took profit. when the breakout stalled. Notice the entry point. This is the ideal price behavior. Our entry point should act as a flip zone.after the break.

26062013

Nifty opened within previous day range. First bar acted as the IR. Skipped BOF of IR as IRL/PDC/BRN very close. Attempted a long on BOF of PDC/IRL/BRN. Scratched. BPB of BRN gave a short. Quick 20 point trade.

25062013

Nifty opened within previous day range. IR formed. Skipped the BOF of IRL as BRN,IRH,PDH were  just above the entry level. Long ON BPB of BRN/IRH. Second trade was a short on BOF of HOD. I expected PDH to hold. But it did not. TP at BRN

24062013

Nifty gaped down and broke PDL. Skipped the short below the first bar as BRN was very close. Did not take the BOF of BRN long as t I felt the rejection very weak. BPB of BRN gave a short signal. 20 point trade

Mission Statement

My mission as a consistently profitable trader is to wait patiently till the price hit a Decision Point, to execute the trade without hesitation on price action confirmation being well aware of the trouble areas, to cut the losses short and allow my winners to run, to focus on the process rather than on money, and to accept the end result without emotions.

Capitulation

Capitulation refers to the act of surrendering or giving up. In financial circles, generally the term is used to indicate the point in time where investors give up their hope to recover their losses due to falling prices, and bail out.

Many investors consider capitulation as an indication of Market bottom. Almost every one who wanted to sell or forced to sell has done so. Only buyers are left now, who will eventually drive the prices up.

It is very difficult to forecast and identify the capitulation levels. Often, investors will only agree in hindsight as to when the market actually capitulated.

In trading parlance capitulation is traders throw in the towel and say “Enough is enough”,and exit their current positions either to cut their losses or to avoid further reduction in their profits. In futures markets no body can exit a position without creating an order flow against their own position. Many traders reverse their positions and trade in the new direction.

Short term traders are creatures of habit and with some experience we can identify and pin point where they are going to capitulate and reverse their positions. Our success as a trader will largely depend on our ability to correctly identify capitulation levels.

Learn to identify levels where traders trading the current move realize they are on the wrong side of the market. These are levels from where we can expect a very high probability, non random, directional price move.