It’s important to have a routine for handling those times when not only your financial capital gets bitten but your emotional capital sinks as well.
1) Reposition: Whether you are caught in a downturn or short squeeze, removing the position is often the best way to remain objective. So often when people start to see a position run against them they freeze up and start to rely on hope rather than remaining in control of the trade. When I see stocks breaking down or acting poorly, they are sold immediately and I am able to start fresh.
2) Check the Charts and your Bias: I have written many times before that price action is never wrong. If you are caught on the wrong side of price action it is a must to re-evaluate the charts you are viewing and check any bias you may have. It is imperative to embrace the prevailing direction and avoid seeing what is not there. Having raised cash and avoiding any further significant draw, take a fresh look at the action and once again analyze your position accordingly.
3) Embrace the New Day: Trading is unique in that each and every day presents a new opportunity. This must be embraced as it is one of the features that makes trading so great. Rather than dwelling on the past, embrace the future. Each and every day presents new opportunities but not unless you are looking for them.
4) Move Slow and Small: Most people make the mistake in believing that restoring financial capital will improve emotional capital when I would argue it is actually the opposite. One can only trade at peak performance when his emotional tank is filled and confidence is high. Regardless of how long you have been trading there will be times when this tank takes a dip and before moving on to make any new financial progress, it is imperative to restore the emotional side first. The best way to do this is to move very slow and small. Rather than taking full positions, take quarters or even tenths. Paper trade if you need to and analyze results. As time goes on your emotional capital will be restored and you will soon have the confidence to re-enter the game at full speed.
Last Close :6294
Above is Daily CHART of Nifty FUTURE
November FUTURE closed at 6331 level.
Yesterday ,We had written above 6280 level it will zoom to kiss 6310-6320 level
Hurdle for Traders at 6320—6340 level.
Maximum it can kiss 6360 level.
Today Again ,We are writing :Rally can take NF to 6400-6450 level……………….(110% it will halt halt halt )
So Maximum 100-150 points from Yesterday’s close.
Channel -Hurdle @ 6440–6450 range.
Now Range will be 6200———6450 level for Nifty Future.
If Inverse Head & Shoulder have to show power then it will stay above 6200 level and will zoom upto 6400-6450 & will again retest this level of 6200 level
Then Upward Journey will start ,Our Target we told u :7000 in Short Run & By Next Year End we can see 11000
Yes ,We want NF should kiss 6400-6450 level………………………in this rally and should happen soon
Swing Traders & Trend Followers …………TAKING Risk or making position of 100-150 points ,On Rise …Sell slowly
(Short Term Range for Traders will be 6200—–6450 level )
Will Update More to our Subscribers ,Updated at 8:13/01st Nov/Baroda/India