Nifty Futures Intraday Trading Report May 13, 2011

Friday the 13th.

The last trading day of the week ended on a profitable note. Initially I entered long at 5479. Target was undetermined at that stage and I waited to study the price action. Eventually, at about 5586, I squared off my long position.

Towards the closing periods, I shorted the contract at 5586. Karvy squared off this trade at about 15:15 for a value in between 5540 and 5545.

Afterthoughts: A day when anyone with average intelligence could have made money – at least on the long side. And yet another day to prove the point (this is especially relevant to day trading) – trend is never your friend all the time. You need to hone your trading skills in such a manner that you need to be aware of the changing trend. Today, I knew a lot of people who were recommending to keep on adding long position if the contract touched 5590 or 5580 levels (this was when the contract was trading in the 5600 – 5620 zone). Why did they do so? Because their fancy charting software suites were showing them to go long on every dip. There is a relationship in between the price of the contract and the time at which it is being traded. As time moves on, support points will become resistance points and the resistance points will become support points. This natural migration is something which no charting software suite or fancy indicator can reveal. Only those who study the price action and the relationship in between the numbers will be able to trade successfully on such days.

I am not trying to assert that I am the next genius day trader in the making. I am still learning a lot of newer concepts everyday. There are lots of other things to learn and that can take many years for me. Always remember – about 95% of the day traders lose money. Being one among the rest of the 5% – that should be our goal.


One Response to Nifty Futures Intraday Trading Report May 13, 2011

  1. Deepak says:

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