05/07/2017 Wednesday
Hi,
It becomes painful (at times extremely) if we don’t understand the Psychology of the market we are trading.
I was successful in using some other strategy, when I came across the current one. So in order to concentrate on this new strategy I overlooked my already successful one.
As we all know there is “No Free Lunch” I understood something new that started benefiting me from Tuesday.
Stock market Psychology
You see, market is fighting with us all (Traders, Arbitrators, Investors, MF, DII’s, FII’s, Scalper and the likes) single-handedly, and we have heard stories of market destroying fortunes of many.
But there are some who understand's market like the back of their hand and have made fortunes. So how is this possible?
Well! Market always gives Signal(s) of what it’s going to do, and yet many of us have failed to see / read it, ultimately experiencing a missed Rally or a Fall. So why do we fail to Read or See the Signal(s)?
The Dreaded One Target System
Before I enter the trade I had my (One) Target and I kept trading with that One Target in mind.
This “
One Target System” asphyxiated me so much that I did not see Reversal Signals market was showing. At times I have missed the Loud and Clear Changing Signals given by market and incurred losses.
Getting asphyxiated to One Target has Failed me many times over.
But this is also the “System” that has helped me make Money. So how could I ignore it?
Since I could not ignore it I have changed it by added some more layers / information in this system and have made it Dynamic.
My
One Target System failed because "
Market is Dynamic" and "
One Target System is Static".
Now my
One Target System has changed to "
Dynamic Multi Target System"
The system not only matches the Dynamism of the market but also changes easily in
Real Time whenever Market gives the Reversal Signal
I have back tested in 1, 5, 15 and 60 minute chart, market have always changed from one of the "
Dynamic Multi Target System" level
My New Trading Style
So now I don't keep One Target in sight but I have a list of Potential Trend Target(s).
I have started this type of trading from Tuesday 04/07/2017 and it has helped me a lot.
I enter the trade at one target and pocket the profits when Market shows Intraday Reversal Signals at other target.
This strategy has helped me in many ways some of which are listed below
- I have the Trend in Sight.
- I have all the possible Trend Targets at my disposal
- I am able to adjust the Market Intraday Signals in Real Time.
- I can possibly say I can figure out the Time the Trend is going to change.
- I am free from One Target Asphyxiation
- The strategy of Max Reward from the Trend is maintained
- The Loss is reduced substantially.
At times my earnings target would go haywire. But from Tuesday I have easily manged a minimum of Rs 2000/- max Rs 5000/- without any headache.
I will try to give those Real Time Signals as and when it happens.
Bye