As we have extended weekend with Friday being a trading holiday spend some time in analyzing your trades and see what can we improved in your trading.
Nifty has seen a rally of from 9260 to 9889 a move of almost 600 points in 3 trading session Have you ever looked back on the start of a big trend and wondered why you failed to see and take advantage of it?
It’s not every day that we see a big trending move in a single direction.Consistently profitable traders know that when these opportunities do come, you must be prepared to make the most out of them.Like we have discussed last week importance of Monday High and low based on Financial Astrology and break of any side we were ready for a big move.
But all too often we hear traders talk about how they had “missed the move” on the initial breakout or “jumped in too late” on trends.
So, what’s keeping traders like you and me from seeing a breakout or trend reversal as it happens? Here are three possible reasons:
1. You don’t have a strategy
Gann is a classic price and time strategy for a reason. All traders know that in order to trade currencies,commodities or stocks, you have to have a trading strategy that tells you when to get in and out of the market, where to set the stop loss and target and things like that. They have to show you the best and most optimum time and point to enter the markets to make money.If you want to maximize each trading opportunity, then you should consider adopting strategies suited for other trading scenarios.
Most of new traders trade on Intuition or Emotion thinking market too high so short and too low so buy but this will not work in long run and you will blow out your trading account sooner than later.
2. You’re stubbornly sticking to your biases
Sometimes traders don’t see the trend change because the markets are just plain unpredictable. More often than not though, it’s because they’re actually on the other side of the trade and they REFUSE to see the changes right under their nose.
They’re not exactly blind to reality but their ego and fear of being wrong have pushed them into clinging to their biases. They become so married to their trade idea that they would rather wait for the trend to go back (no matter how much losses they sustain) than admit to being wrong.
Remember that having biases is not a bad thing but sticking to your biases – can lead to trading account blow out.
Making plan B’s of your trades is also good way to promote flexibility in your execution. Consider alternate scenarios for your trades like i have been taught by my trading guru to always make both buy and sell levels.
Buy above 324 Tgt 327, 330 and 333 SL 321
Sell below 320 Tgt 317, 314 and 311 SL 323
Having an Plan B help us in below cases
- What would you do if price didn’t move in your direction?
- What if it moved faster than you expected?
- What if it didn’t reach the levels you’re looking at?
Aside from increasing your confidence before the trade, the exercise would also help prevent you from getting too attached to your initial trade idea.
If you want to become a consistently profitable trader, then you must learn how to make price action work in your favor and maximize any and all trading opportunities that come your way.