Reverse Trading - Outwitting the market

Hi friends,

The idea of the thread is to Reverse Trade. We will be reverse trading some of the most famous systems known to retail public.

90% of the people loose money in the stock market. How can one earn money is the question for which people look for answer to. They spend lots of year searching for the holy grail.

The answer is so simple and in front of everyone. Still people cant look at it. Simple logic says if you are loosing money consistently then start doing reverse of what you are doing and you should start winning consistently.

Its a difficult task to pull off but once mastered will definitely reward you.

I will try to post trades live whenever possible. I welcome members to join in and try this method and post there experiences with it.

Ok friends , now we should be thinking like a new trader who has just forayed into the stock market. Keep this character always in your mind and try to think like him. Try to make this character real life like. Keep him always in your subconscious.

Important point is that this character will develop based on the outcome of every trade. As he continues to develop he will loose more. And apparently we will earn more.

This is a difficult task to do without experience. Still everyone would be having some exp with stock market and would be able to do this without much problem i feel.

I will be naming my character as Andy. Ok so now Andy's story will start

Andy has done all the research work required. He has done his paper trading with good result. He has subscribed to a RT data feed provider. Andy likes the fast moving stock markets and is ready to earn Big & Quick.

He feels 5 min time frame is best for him as he wants to do lots of trades in a day. he feels more he trades more early he will get rich.

He has read about this trend following breakout system. Seems simple enough to him. He has made a watch list of few stocks and is ready to trade this system.

One thing i missed out on is that to succeed we know 1 thing is most important without which no one can ever think of being successful in stock market and that is discipline.

So although we will let Andy decide upon our trade and we will be taking reverse of that trade. But we will never loose more than 1.5% of the capital in one trade and 5 % of the capital in 1 day. This is very important.

There is a thing called beginners luck. So if andy starts hitting that then our above rule will save us.

Andy's and mine capital is 2l

Andy is watching coal india, tatasteel and axis bank to go short on break of day low + filer. Which is a 5 min pivot low

Reliance infra has also caught his eye

Andy short Axis bank at day low break 1461.2. We are long lets see

1st trade for andy

Andy short in Coal india also at 339.55 we are long

Andy decided axis bank stoploss to be 1471.5 as position now going against him

That will be our target

axis bank hits andy's Sl. We gain 2500