Nifty Futures Intraday Trading Report March 29, 2011

Trade 1: Entered long at 5708. Squared off in between 5745 and 5749.


One has to realize that no one can “spot” or “predict” the exact reversal levels successfully everyday. On the other hand, if we are trading with the trend, we do not have to worry about reversals. Set an appropriate target level and once those are achieved, we have to exit the market.

For the sake of illustration, allow me to cite my trading session for the day. I entered long at 5708 levels. Right now, the contract is playing about in the range of 5740 to 5760. I can square off at this range and walk home with profits.

Alternatively, imagine I had shorted at these levels. I have no absolute knowledge whether the contract would touch 5800 or fall to 5700. It can go either ways. We cannot rule out the possibilities. If the value of the contract falls, I “may” get some profits. But what are the chances of it falling? As of this posting, I don’t see any reason for it to dwindle. If it rises, I may have to exit the trade with moderate losses.

In effect, the one who trades with the trend emerges as the clear winner since they bought at a very nascent stage itself.This is one of the mistakes the retail traders make. They jump into the scenario very late. It is of no wonder that 95% of the day-traders fail!

Contrary to popular belief systems, the trend for the day is established very early during the day. With experience, anyone can find it out. 🙂


About Praveen Pious Francis
A part-time blogger who has a wide range of interests including investing in the stock markets across the globe and broadband technologies in India.

One Response to Nifty Futures Intraday Trading Report March 29, 2011

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