Trading Report (11/01/2011)


Once again, I entered the market late due to some inconveniences at home.

As of now, I shorted TATASTEEL at 656.25 and recovered it at 648.45. The scrip rose once again and touch 657 – 658 range only to fall. I shorted once again at 656.25 with the same target price of 648.45. I have set my stop loss at 658.20.

The resistance levels for the scrip are 660.15, 658.20, 656.25, 654.30. The support levels for today are 642.60, 640.60, 638.65, 636.70. Target when bought or shorted at any of these prices is 648.45.

Update 1 (12:52): Target achieved. Waiting for the market to touch the resistance levels and fall so that I may take positions once again. 🙂

Update 2 (13:04): I shorted again at 654.30 with a target price of 648.45. I have kept stop loss at the next resistance level i.e. 656.25.

Update 3 (13:17): Market is highly volatile. The bulk of the people are buying TATASTEEL when it is all poised to fall down. But that is how the system works. Someone has to lose money, while the rest will gain it. My earlier set stop loss was achieved within minutes. I shorted once again at 656.30. The same is happening with SBIN too. It is in the overbought zone right now. Any minute, the law of harmonics that prevail within the market, will materialize. And it will fall deep then. You can short it at 2597.65 with a target of 2539. Keep stop loss appropriately ..

Update 4 (14:56): Target achieved once again for TATASTEEL. I bought the scrip once again at 642.60 and sold it off at 648.45.

Afterthoughts:

I do not know whether this is one of those lucky days when the scrip you choose and the calculations all gel together. I state so because my calculations may not have worked with SBIN. I found the values for Hindalco too. Even it didn’t work out. Everything was working fine until people decided to buy back (and ruin the party). Ideally, SBIN and Hindalco was all set to fall drastically as these scrips were trading in the premium zones. This is one reason I am planning to switch to forex trading. At least the calculations have more weightiness – rather than the sentiments of people. On bad quality which I have noticed among traders in India is the ability to mimic what others do. Instead of following their own strategies, they look at the overall market sentiments and take decisions based on that. For instance, when the nifty crossed 5750 (which is hailed as one of the major supports by the main stream media), people began to sell in large numbers. This is why it even tested the 5700 levels today. By the time people realized that the nifty has touched such low levels, they began to purchase in large numbers. This decision resulted because the trading day is about to end and surely the Nifty will not touch 5000 on this day! As a result, the Nifty started rising and it ended flat today. Well, such strategies may work on days such as these. If you are looking for long term success just follow the strategies. Profits will always come to you. Am happy that I could make sizable income using the same scrip (TATASTEEL).

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