A Humble Journey: 200 Points Per Year

[raynor]

hi guys on jan 1st really my mind was worrying whether it would hit stoploss...
since price was fluctuating about the buy price.. bloody weak mind...

so when next day when price was up by 100 pts my mind tempted to take
to sell immediately... again bloody greedy mind...

however i remember i am following my system and i consoled and advised
myself to follow the system..at the end of the day price is above 100 pts in nf..

let me not joy... since i donot know what will happen on monday...let me follow the
system.. as i already said we can catch only 60%-70% of trend.. watching the
going to wait patiently and will exit only when my system gives sell signal
disregarding the emotions..

 

[raynor]

an advice to me:


dont predict... just react...

 

[raynor]

Swing trader, the best money is made at the market turns. Has missed a lot of meat in
the middle, but catches a lot of tops and bottoms.
Spends his day making himself happy and relaxed. Gets out of a losing position that is
making him uncomfortable. Nothing’s better than a fresh start. Key is to play great
defense, not great offense.
He believes prices move first and fundamentals come second.
He doesn’t care about mistakes made 3 seconds ago, but what he is going to do from
the next moment on.
Don't be a hero. Don't have an ego. Always question yourself and your ability. Don't
ever feel that you are very good.

 

[raynor]

An advice to me..
now the price up over 100 points.. should i be happy and exicted now... no
i shall not be happy and i shall not worry.... nothing is sure in trading ..
anytime the price may spike and may get little bit more profit... or the price may
fall suddenly and erode the profits... all i can do is just follow my system and do
whatever the system says.. no give in to emotions... just sailing the boat..
just trading according to systems..just keeping the going..

 

[raynor]

placed my tsl at 8435

 

[raynor]

tsl triggered sold 3 lots at 8435

 

[raynor]

yesterday i exit completely not because of my system given sell signal.. but becasue
i thought it was enough..
today fall is scary...if i have open position there will a loss for me.. instead of
100 pt profit i could have incurred loss of atleast 30 pts per lot.. ok any way
understand i think the profit booking should be multiple times instead of single
time.. lets wait and see..

today morning onwards stayed out of market becasue bsnl sim gprs was not
working propely...as of now i am not having any positions anyway discusing
this crash will be a worth.

 

[raynor]

points observed by me:

1. i am remembering some thing like this during 2011.. there was Greece fear in Europe.. then came piigs problem.. during those time market was falling in general like this.

2. one day us market fall 3 to 4 percent but nifty discounted one percent in opening and remained flat or positive

today during first 5 minute there is a sharp fall..

observing closely..
in first 5 minutes market fell 8400 to 8000 and volume is 2 million if adjusted for old nifty it is 1 million

possible reasons..nobuyer during first 5 minutes.. this lead to free fall
due to panic.. freefall aggregated by sl algorithms.. if many people conservatively placed the sl below 8300 means initial freefall triggered another freefall because stoploss of many people triggered and given a sell at market price and still there is no buyer

but who is buying after 5 five minutes.. they are people called option sellers.. yes assuming market will go up there will me naked put option sellers or some other put sellers who may followed some call put strategy

for naked put sellers they have to buy immidiately once stoploss trigeered.. thats the reason for sharp recovery during first5 minutes.. after sometime the other type of put sellers have closed their position by buying nifty who provided the price support and prevented the nifty fall further for some time..

leassons learn though we are future players.. there are other types of people who are called option players.. at any point of time they have open positions for their puts..

if last night us market closed 2 percent or even 3 percent, and if nifty fall drastically during first 5 minutes wait for the next 5 minutes so the price may rise fairly and we can sell or execute the stoploss order at fair price..

infact option writers are the players and they will provide the balance to market if market rise or fall suddenly.. they will provide support during fall and resistance during spikes...

 

[raynor]

SELLING placed below 8120 for 3 lots

 

[raynor]

sl hit 8162