I have seen people quite reluctant to enter buying when markets open with upside gaps,,,most traders who dont believe in technicals or cant use technicals....thinks that ,as the markets has opened up with huge gaps,,it can be shorted for some quick bucks on the down side..the reason is plain n simple ,so many times they would have done the same with success..
BUT whats their % of success ,in trading like this ??....naturally markets do not STAY at a single rate...so anyones guess has chances of proving right on 50% occassions..THE LAW OF SIMPLE PROBABILTY...but in my view this is the single most powerfull reason that new n undicplined traders loose money trading.once and for a few times initially a traders proves his guesses right,he stops thinking the other way around...and than suddenly a trade comes, which brings his account in losses,wiping out first few trades of profits too.
With some basic technicals ,a good analyst can reach upto 65-70% of success ratio in predicting a move.
HERE,he can become a very good trader ,if he can control his losses (30-35%) to minimum levels ,maintaining trading dicipline.but this is very very tough mental job.here HOPE becomes this learned traders biggest enemy.
SO, I was trying to develop a system which can have a higher % of success ratio and which can even work with a DOUBLE AT STOPLOSS strategy..so that it can give you chance of atleast covering the losses.
I will be posting 1 minute charts of nifty with both buy-sell calls as on todays markets.readers can see ,how quickly my system picks up buy calls..even though there was a huge gap up opening.
No comments:
Post a Comment