Setting up traps to catch novice traders

[sachin_jain3]

In the last few trading days we have seen clear resistance at 2790-2810 and support at 2680-2690. So the trading setup for today (must have been valid for yesterday as well - sorry didnt post) is:

Short above 2789 with SL of 2811 and target 2731
Buy below 2691 with SL 2674 and target 2729

thanks,
Sachin

 

[sachin_jain3]

Yesterday we say support at around 2740 with resistance at around 2790. so the setups are a little different today

Short above 2789 with SL of 2811 and target 2741
Buy below 2740 with SL of 2729 and target 2789

 

[riskytrader]

In case you do not feel hurt but this is not a set up. A set up is a much difficult to identify and it requires a lot of experience and expertise in a lot of tools to identify setups. It is difficult for me to explain those to you as it is not just theoritical. Support and resistances are in my view not really important as they are just psychological. Set ups is everything and sometimes set ups fail. For eg. Today when nifty was trading at 2785 there was a buy set up developing but the set up failed once europe opened and selling pressure pulled nifty down in the last half hour creating panic unwinding by players who had laid the set up. Everyday is another day so tomorrow we may get another buy set up which may or may not succeed.

 

[sudoku1]

the time(ing) TRAP

http://www.ritholtz.com/blog/2009/03/better-late-than-never-dow-6800/

 

[anshuman.chaudhuri]

Sachin,
I needed to know have you taken any one of the trades...
Because if you have there is fair chance that you might
end up being the Novice..
My knowledge in this matter is limited.However the word "Trap"
hurts my sentiment as I myself is new to trading and trying to learn..
and I thought TJ was a place to do that..
Kindly consider the possibility of changing the name of this thread.
Regards
Anshuman

 

[sachin_jain3]

In case you do not feel hurt but this is not a set up. A set up is a much difficult to identify and it requires a lot of experience and expertise in a lot of tools to identify setups. It is difficult for me to explain those to you as it is not just theoritical. Support and resistances are in my view not really important as they are just psychological. Set ups is everything and sometimes set ups fail. For eg. Today when nifty was trading at 2785 there was a buy set up developing but the set up failed once europe opened and selling pressure pulled nifty down in the last half hour creating panic unwinding by players who had laid the set up. Everyday is another day so tomorrow we may get another buy set up which may or may not succeed.

I think that these setups will work well if my identification of supports and resistances are correct. Support and Resistances are significant and can be traded without any other information. Ask this simple question - Why do you see a an area (lets call it support) from which prices just zoom up after a round of selling. Because there were more traders willing to buy in that area then were willing to sell. So the demand supply mismatch resulted in the price zomming up after a round of selling. So this area of support when visited next gives us a GREAT opportuinity to buy again. Same is true with a resistance. Most of the times traders dont identify the support and resistances correctly, even if they - they complicate things furhter by using other indicators which forbid them from taking position. Even if they take positions, their emotions prevent them from execting the trade correctly. So think rationally and control your emotions - you will succeed in trading.

 

[sachin_jain3]

Sachin,
I needed to know have you taken any one of the trades...
Because if you have there is fair chance that you might
end up being the Novice..
My knowledge in this matter is limited.However the word "Trap"
hurts my sentiment as I myself is new to trading and trying to learn..
and I thought TJ was a place to do that..
Kindly consider the possibility of changing the name of this thread.
Regards
Anshuman

Since these are intraday trades, I take these trades only if i am free for the whole day, but most of the times thats not the case. But i take all the trades that I mention in my other thread:

http://www.traderji.com/futures/25443-simple-trading-based-trend-support-resistance-levels-4.html

The trades posted in the above thread span multiple days and better suitable for me.

 

[sachin_jain3]

Here is the trades for today

Buy below 2750 with SL 2729 and Target 2789
Sell Above 2790 with SL 2811 and Target 2751

 

[sachin_jain3]

For today the support looks at around 3350-3330 while the is around 3400-3420. So the set up could look like this

Buy below 3351 with SL 3325 and Target 3400

 

[sachin_jain3]

The support is at around 3441, so here is the setup for today

Buy below 3446 with SL 3434 and target above 3490

Thanks,
SAchin