31032014

Nifty gaped up above PDH. IR formed. Price failed to go above IRH. Avoided the short as  RN ,NS BRN and PDH was below. Price traded between RN and PDH for a long time and broke down. Went short. Covered when the second push down terminated at 6710. I was hoping a move till BRN.Long on break of the swing high . I was looking for a quick trade to PDH but price traded in between for a long time and went up breaking PDH. Covered at a 20 point profit

Reading: Procedural Memory

Do you want to improve your trading?
Pradeep Bonde

Then learn how procedural memory works. Trading success is about developing expertise. When you try and develop expertise you train your procedural memory. Procedural memories are implicit memories. They allow us to lower cognitive load. They are learned intuitions.

Procedural memory is memory about how to do a process. It is stored in memory as one schema. A process containing say 32 steps is not stored in memory as 32 discrete step but as one sequence of step. When performing that task the brain efficiently recalls all those steps simultaneously so you can do the task effortlessly.

Procedural memory helps free up the brain to do other things. It frees the brain by reducing cognitive load. We have thousands of procedural memories developed over our lifetime. They make our life easy. For example take a simple skill like flossing your teeth, it is a procedural memory.Once you develop it you can perform it daily without thinking or while doing some other task without focusing on a step by step sequence.

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Testing Times

I came across a thread started by a young trader at Traderji forum. He is just 25 years old . He lost more than 35 Lakhs in seven months, trading Crude Oil contracts and had to sell his home to make good the loss.Many such people get wiped out by the market

Remember the first law of holes?.
"If you find yourself in a hole,stop digging"

If we are in such a situation, the best thing to do is to stop trading. Do not think that we can turn around and recover the losses with a different strategy. It will never happen. We will end up losing much more.

The reason is very simple. The key success factor in trading is "Time". In fact time is a big factor in achieving success in any performance activity. You have to remain engaged in the activity long enough to get good at it.Trading is no exception.We will not develop the required knowledge,skill and behaviours required for trading success overnight.We have to survive a long learning curve before entering the earning curve.

Do you have the resources to stay in the game long enough?

Ensure that you have enough capital to trade and funds necessary to meet household expenses till your trading clicks. Supports from your family and friends are equally important.Without these safety nets in place,do not venture into full time trading.It may end up as a misadventure.

28032014

Nifty gaped up within previous day range. Tried to go above PDH but failed. BOF of PDH gave a short signal. Skipped considering IRL,BRN and PDC. Then a Barbed Wire around BRN with DO and PDC as range extremes. Shorted BOF of PDH on break of MSP. Trade failed creating a TRAP pattern.Exited at a small loss. Long on break of PDH. There was no momentum as expected but price finally  moved up after a pullback.TP at market close.

27032014

Another expiry day.These days have become less choppy after the introduction of xx50 strikes, it seems . Could take two nice trades. Nifty opened near PDC and attempted to go down. First candle was a MC and acted as IR. Went long above IRH and covered the trade at PDH. For a long time Nifty made a  Barbed Wire around PDH. Long on break of  PDH  on BOF of Range Low.Covered at 20 point profit. No more trades.

26032014

Nifty Gaped up above PDH. IR formed. Short below IRL. Trade failed to move. Scratched. Went short on BOF of range high. with stop above HOD. Closed the trade when price bounced back from Range Low above BO candle. Never expected the next down move breaking NS BRN,PDH,PDC and BRN. Stayed away from the long trade also. But trade moved well through the fluid Missed both the major moves of the day.