Nifty Futures Intraday Trading Report June 07, 2011


A simple and straightforward session. I entered long in between 5520 and 5530. The system squared off the trade in between 5560 and 5570.

I wish the rest of my trading career were dotted with such days in succession! 😉

Afterthoughts:
I have this routine everyday. After entering long / short, I visit forums and message boards frequented by certain elite retail traders (they seem to lead quite a successful life day trading the futures contract; they claim to do so – I doubt it though). A good share of these personalities were asking the other fellow traders (i.e. the ignorant ones and the ones who do not wish to study price action but would believe the words of these complete strangers) to sell on every rise. A particularly interesting place to visit for entertainment purposes during the trading hours is Mudraa.

Therein lies a problem which I fail to understand. How can an average retail trader decide the market has formed its “top” or “bottom”? I have noticed that these traders always commit the same mistake everyday – they try to catch the top or bottom of the market. Of course, they get lucky on certain days and make immense money. It gives them the false sense of security that finding the top / bottom of any market is the best way to day trade. That is wrong. As far as my understanding, trying to do so is the easiest way to the poorhouse. The market is always perverse – it can and always will go higher or lower than one can ever “predict”. The best way to make money is to stay on the direction of the predominant trend. There are no bull side or bear sides. There is only one side and that is the right side.

Have a great day!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: