Wishing you all a profitable month ahead!
We are very close to the US election results and have been experiencing high volatility. The increase in volatility poses challenges as well as learnings. If one wants to be a fulltime trader, one needs to accept this volatility spike and still have faith in his system and go ahead with trading. However, as a caution the trades need to be ones with tight SLs and quick exits. The faster one trails the SL in this situation the better it is as it decreases the risk associated with staying in the market.
On 2nd I had traded only Titan and on 3rd had taken trades in IndusInd Bank, Axis Bank and Reliance. Had also traded BNF through options to reduce risk. Please go through the charts to understand the trades.
Titan: It gave a perfect entry and had a close SL, however, the sellers could not drive the prices down and all the volume got absorbed at lower levels. Along with this there was a reversal in BNF and NF which prompted me to exit the trade at cost. There was minor slippage in the trade but it was still a safe exit.
Indus Ind bank: This was a long call that quickly reversed and hit the SL.
Reliance: After a steep fall a day before I was expecting some short covering and was watching how it traded at BRN level of 1900. After the opening spike it traded below 1900 but was making higher bottoms. This prompted me to take a counter trend trade on the long side when it broke the DH at 1901. The SL was at 6 points which I scaled up as soon as it crossed 1910. Part booked at 1912 and trailed SL to 1910. It hit the TSL and took me out of the trade. Since it was a counter trend trade and the daily chart is still weak, there was no doubt it would see selling pressure again from buyers stuck at higher levels and renewed shorting. Thus the trailing of SL has to be aggressive.
No comments:
Post a Comment