Wednesday, 8 February 2017

6 comments:

  1. Uday , u have taken long at 8692 but there is brn 8800 so LOL formation does it is not mediocre trade as space & time constraint also yesterday barbed wire at BRN 8800?
    Really trade selection is awesome from ur end 7 market always obliges u.
    also, one query regarding yesterday when u confirmed means time there is barbed wire formation?

    thanx in advance

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    Replies
    1. Prakash

      Do you have any plan to trade the news flow? What to do before the news is out and what to do once it is known?

      If you don't have that plan, better to avoid trading on news flow heavy day like today.

      I do not trade ahead of the news. I wait for it to come out, dust to get settled and then trade. I have a patience to wait, sit tight from 9 am till 3 pm (6 hours) in front of screen, doing nothing, just watching the prices and waiting for the news to hit. Now ask yourself, can you do that? Have you developed that kind of mindset? If yes, then it is good.

      Now coming to your question, the DPs above the entry will not be able to hold the prices on such news flow day because news are making the prices to move. DPs, ranges or any level work best when the traders are in control and today once the news came out, it is going to act as a trigger for price moves and traders will not be in control.

      Once the prices start trading above and below the DP, do not move away from the DP you can doubt the potential barbwire formation. Barbwire is nothing but a tight range where prices continue to trade within that range. When we trade the DPs, we want DPs to work as a strong barrier and prices to do something there, either get accepted beyond the DP or get rejected, so that we can benefit from that price move. So once it fails to move away from DP, it takes the shape of barbwire formation. Today PDC got barb wired in morning, did you notice that?

      URD

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  2. Dave sir, I am doing good on paper trade and making consistent 100+ points for last few months. Can i able to produce the same results in real time trading with one lot. Please guide , i have fear of losing

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    Replies
    1. Arun

      That is good. You have been doing so for the last 6 months consistently and that is the big achievement. Real trading is no different. How you read the prices, what made you take the trade and how you managed the trade is important. You just need to continue doing the same.

      Once you enter into the trade, 8 out of 10 times you will be put into following situation. Your trading success will depend on how you handle yourself in these circumstances,
      1) False trade entry trigger.
      2) After your entry, prices not moving in your favor.
      3) You keep on looking for the setups but they do not appear and once you lose the focus, it happens and you miss it.
      4) You wanted to take the trade on the setup, but let it go thinking it is not that good and it turns out to be good.
      5) You have missed a good trade and now you find it very difficult to wait patiently for the next one.
      6) Prices start to move only after you exit the trade.
      7) After hitting your SL, it starts to move in your favor.
      8) You wait for the prices to reach target to book out but prices reverse without reaching there and all the profit is lost.
      9) You book out in profit, feeling happy and prices continue to move in your favor much more, making you curse yourself, why did I book out?

      So be prepared for it in advance, have your plan ready and just follow your plan. Markets will take care of everything else.

      URD

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