BEARS GOT FRIED ON FRIDAY.. SO DO I..

NIFTY

SENSEX

Hi Friends,

Finally SENSEX has broken out of the year long Channel. Now I would like to revise my Bearish stance on Market and look for Bullish alternatives if any..

Well but as this rally is overstretched I would not jump into buy now.  The RSI on most of Indices & Stocks showing negative divergence. So there has to be some sort of correction.

Well this doesn't mean one should take a shot call. All the early shorts(Bears) got fried on every Friday since last month. I always wait for confirmation. Though I have initiated short at 5285 would book loss and move with the Market.

At 5060 I called for early short and got stop out at 5130. And now at 5285 again called for short & will get stop out tomorrow with gap up opening expected.

But after gaining 500-600 points on each swing in NIFTY since last 6 months a 150-200 points loss is a healthy correction. :) 

Its a give and take Business. I gave these 200 points to Market & Gained a Valuable Lesson. That an Early Trade without Confirmation would only lead to losses.

So till the time NIFTY doesn't break below the Upward Rising Channel I would not Initiate any short position.

Well since the year long Channel has been now broken upwards I may look for Bullish alternatives. But I'm in no hurry to buy.. 

As I'm an Elliot follower would simply look at the structure of the fall (i.e. whether a Corrective or an Impulsive) and decide whether to buy on dips.

Till then Stay with the Trend and be Disciplined..

Happy Minting..

Thanks & Regards,

Harsh Dixit.

40 TRADING RULES WHICH ONE MUST FOLLOW

HI FRIENDS,


THIS IS THE CORE BASICS OF TRADING:-


1  TRADING IS SIMPLE BUT NOT EASY
2  WHEN YOU GET INTO TRADE WATCH FOR SIGNS YOU MIGHT BE WRONG
3  TRADING SHOULD NOT BE BORING
4  AMATEUR TRADERS TURN PROFESSIONAL WHEN THEY STOP LOOKING FOR NEXT INDICATOR
5  YOU ARE TRADING OTHER TRADERS NOT STOCKS OR FUTURES
6  BE VERY AWARE OF YOUR EMOTIONS
7  WATCH YOURSELF WHEN YOU ARE TOO MUCH EXCITED
8  DON'T OVER TRADE
9  IF YOU ARE COMING TO TRADING WITH IDEA OF MAKING BIG MONEY YOU ARE DOOMED
10  DON'T FOCUS ON MONEY
11  DO NOT IMPOSE YOUR WILL ON MARKET
12  BEST WAY TO MINIMIZE RISK IS NOT TO TRADE WHEN IT IS NOT TIME TO TRADE
13  THERE IS NO COMPULSION TO TRADE 5 DAYS A WEEK
14  REFUSE TO DAMAGE YOUR CAPITAL
15  STAY RELAXED ALWAYS WHILE TRADING
16  NEVER TURN YOUR DAY TRADE TO OVERNIGHT TRADE UNLESS THERE ARE TOO MUCH SIGNALS
17  KEEP WINNERS AS THEY ARE MOVING YOUR WAY
18  NEVER OVERWEIGHT YOUR TRADE
19  THERE IS NO LOGICAL REASON TO HESITATE IN TAKING STOP LOSS
20  PROFESSIONAL TRADERS ALWAYS TAKE LOSSES AS THEY TRUST THEMSELVES TO DO RIGHT
21  ONCE YOU TAKE A LOSS FORGET IT AND MOVE ON
22  FIND OUT WHAT LOSS PARAMETERS WORK BEST FOR YOU AND ADJUST ACCORDINGLY
23  GET A FEEL FOR MARKET DIRECTION BY DRILLING DOWN LOOKING AT MULTIPLE TIME FRAMES
24  DEVELOP CONFIDENCE BY DOING YOUR TRADE SETUP SAME WAY EVERY TIME
25  DON'T BE STUPID BY ADDING TO LOSERS
26  TRY TO TAKE POSITIONS IN PART IF NOT SURE ABOUT TRADE
27  RING THE REGISTER AND SCALE OUT A POSITION
28  NEVER LET YOUR EGO COME IN YOUR TRADE
29  WHEN EVERYONE IS RUNNING FOR STOCK ALWAYS TAKE PROFIT IN IT
30  EMBRACING YOUR OPINION LEADS TO FINANCIAL RUN
31  ALWAYS BE A DISCIPLINE TRADER AND NEVER TRY TO WIPE OUT YOUR TRADING ACCOUNT
32  SIPHON OUT YOUR PROFITS EVERY MONTH AND PUT THEM IN SEPARATE ACCOUNT
33  ALWAYS RISK SMALL MONEY IN YOUR PARTICULAR TRADE BY CALCULATING RISK
34  ALWAYS PROTECT YOUR CAPITAL AND STICK TO RISK REWARD RATIO
35  IN FINANCIAL MARKETS HERO'S OFTEN GET CRUSHED TO KEEP IT MIND ALWAYS
36  STICK TO YOUR TRADE RULES AND YOU WILL NEVER BLOW UP YOUR ACCOUNT
37  MARKET CAN RE ENFORCE BAD HABIT AVOID IT
38  TAKE PERSONAL RESPONSIBILITY FOR EACH TRADE
39  NEVER THINK HOW MUCH MONEY U CAN MAKE FROM TRADE FIRST THINK HOW MUCH RISK
40  WHEN YOU ARE NOT SURE ABOUT NEXT STEP OF MARKET NEVER TRADE






HAPPY MINTING..


THANKS & REGARDS,


HARSH DIXIT.

NIFTY TOUCHED 5240 IS IT A BULL TRAP?

SENSEX

NIFTY

Hi Friends,

As expected NIFTY almost achieved 5250. But is this a Real Bull Rally or just a Trap for Bulls?

Well as I mentioned in my earlier post any Rally above 5100 seems more like a trap for Bulls. And as I mentioned all the Bears who are in hurry to short will be Fried. :)

The psychological Mark of 5200 is now taken out and year long channel has been broken on upside thereby creating an euphoria. But we have witnessed similar action in April at 5944 where 5900 was psychological mark and in July at 5740 again breakout from channel and psychological barrier of 5700. But we know what happened after such move.

Thought the year long channel has been broken on Nifty; we can clearly see that it is still not broken on the SENSEX. So this move seems more to be a Bull Trap than Real Rally.

Wave Count wise 5 wave advance looks to be complete at today's high or it may get extended to 5285 max. where B leg would be complete. And then the massive wave of short selling in Wave C cold take Nifty to 4250.. For the time being lets keep short term target of 4980.

 RSI is now showing negative divergence but the trend will turned Bearish below this upward rising channel. Expecting a two day tennis match between Bulls and Bears. Simply meaning distributions before the big reversal which could take place on Monday 6th Feb or latest by Tuesday.

This view will get negated above 5350 where I will end Bear Market and accept that Bull is King..

Happy Minting..

Thanks & Regards,

Harsh Dixit.