A topsy turvy kind of day. NIFTY opened higher and then somewhere along the way decided to move lower.
And how it went.
More than 100 points at one stage. Then it made a recovery and stopped just above 11600.
High of the day was 11710.30 and the low was 11549.10. The close was 106 points lower than the high of the day. Let us not read too much into these numbers. Everything pointed to an upmove yesterday and it happened. suddenly the selling started. Now the experts tell us that it was due to rising crude oil prices. As if crude prices were not rising in the previous week. Markets can go either up or down and we can keep listening to same set of reasons.
For us, the day brought a little hope. The loss is slightly reduced.
But these positions can change for better or worse in a day. Let us see how it goes from here.
New Trades for the Day :
This blog is as much about teaching as it is about finding trades to make money.
One of the important lesson is to stay patient and control your risks. Protection of capital is very important. It is not that every opportunity that looks good will eventually come good. So adding more trades does not give a big benefit. We are already in 7 trades which is a reasonably good number. If 2-3 trades go right, there is every chance to be profitable.
We do not add to these trades till we see some of them doing well.
This is a lesson in discipline and patience.
Just observe the current trades.
Trade cautiously, trade profitably.
Disclaimer: This post and examples are for teaching purpose only and are not meant as advice/suggestion to trade in these stocks. Trading in Futures and Options can lead to big losses and should be done with appropriate knowledge and advice only. Mentioning the stocks here does not imply that I have a trading position or likely to take a trade in these stocks.