Avoid Overtrading

 Too many traders feel that they must trade every day. Let’s face it; some traders are addicted to trading. A day without a trade is like a day without a meal to them. The face is that some days offer few if any trading opportunities. The trader who wishes to minimize loss and preserve capital should understand that it is not necessary to trade everyday. There will be days when no trades are indicated.

One of the telltale signs of the futures traders about to go astray is the searching for a good trade syndrome. Have you ever found yourself sitting at the computer or quotation screen, bored because there were no trades that day? Ave you ever found your fingers idly rambling over the key board as you searched chart after chart for market to trade? This is the first sign of trouble. If you ever find yourself in this position, do yourself a favor stop looking? Good trading does not occur every day.

Set standards as to which markets you will trade. I there are no trades in these markets do not allow you to endlessly search for trades in obscure or thinly traded markets. This may work occasionally, but the odds of success are slim. The successful trader will specialize only in a handful of markets and will do well at these. Do not attempt to spread yourself too thin by looking for trading opportunities where they do not exist.

Source :  Market  Masters written by Jake Bernstein

Mid day market update

Nifty hourly chart

In hourly chart Nifty has formed a channel. It might test the lower part of the channel which is around 5300. Long positions can be considered around this level.

Today is the last trading session of this week. If Nifty closes above 5300 then it will confirm the breakout in weekly chart of Nifty. If it happens then Nifty can test 5350-5400.

Market update for 10/08/2012

Nifty hourly chart

In the hourly chart of Nifty traders can observe that Nifty has formed a ascending channel. It has tested the upper part of the channel which is acting as resistance. Momentum indicators like RSI and MACD are indicating sell and Nifty can test 5300-5270.Long position in Nifty can be considered if it comes down to levels of 5270-5300 . The short term trend will remain positive until Nifty is above 5270.

Nifty daily chart

Today's trading session was very volatile as IIP numbers were announced. Once again  Nifty made an unsuccessful attempt to sustain above 5350. The short and medium term trend of Nifty will remain bullish. 5300 which was acting as resistance can act as support so market is expected consolidate in the range 5300-5350 for some time. In this situation it would be more appropriate to concentrate more on front line high beta stocks rather than trading in Nifty.

Open Positions

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	514.3	-7.7
Nifty 5300 PE	Long	57	48	-9
Havells	Long	542	539	-3

 

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Havells	542

Nifty Medium term view

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5336
Reversal if closes below	5080

Thought for the day

Effort fully releases its reward only after a person refuses to quit. 

Market update for 09/08/2012

Nifty hourly chart

Nifty is unable to break the important resistance at 5350. Even though Nifty sustained above 5350 it is unable to break the resistance and closed below 5350. Throughout the day Nifty was consolidating in a narrow range. Indicators RSI and MACD are showing slow down in momentum and there are chances of Nifty falling to 5300 levels. Nifty is forming higher tops and higher bottoms in hourly chart this formation will change if Nifty sustains below 5270. So important resistance for short term is at 5350 and supports are at 5300-5270. Short term trend remains up.

 

Nifty daily chart

Nifty made a breakout from the trend line resistance at 5300. But this breakout doesn't seems to be sufficient. As indicated in the chart 5350 was tested several times and unless this resistance is breached uptrend cannot be expected. Nifty has formed 'doji' candle stick which indicates indecision in the market.

Chart  of the day

Crude Oil

Crude Oil is in a bullish phase from many trading sessions. The overall trend will remain bullish from short term point of view. However it can face a hurdle at Rs.5230 and once this level is taken out the target will be Rs.5260.

Open Positions

Scrip	Type	Price	CMP	P/L
Rel Infra	Long	522	516.35	-5.65
Nifty 5300 PE	Long	57	51	-6

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Rel Infra	522
SBI	2015	2065	40

Nifty Medium Term Trend

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5336
Reversal if closes below	5080

Important Results :

Tata Motors , Tech Mahindra , Ranbaxy , IOC , HPCL , Adani Enterprises , Apollo Tyres etc

 

Thought for the day

Place a monkey in a cage it is same as pig. Not because it isn't clever and quick but because it has no place to freely exercise its capabilities.

Market updates for 08/08/2012

Nifty hourly chart

Today Nifty made a flat opening at 5295. But gained momentum in the later part of the trading session. Banks , IT and Real Estate performed well in today's trading session. Nifty closed at 5336 up by 54 points.

In the hourly chart of Nifty you can notice that Nifty has breached every resistance except 5350 which is the high of past 40 trading sessions. If this resistance is breached then Nifty can easily achieve 5400.

 

Nifty daily chart

The good news is Nifty has closed above 5300, it is trading above 200 , 100 , 50 DMA , MACD and RSI are indicating possibility of reaching 5400. But Nifty has tested 5350 many times before (indicated in chart). Above 5350 the expected targets are 5400-5440. 

Open Positions

Scrip	Type	Price	CMP	P/L
SBI	Long	2015	2061	46
Nifty 5300 PE	Long	57	57.35	0.35

 

Today's Trade

Scrip	Buy Price	Sell Price	P/L
Bank Nifty 10500 CE	214	255	40
Bombay Dyeing	504	525	21
Nifty 5300 PE	57

Nifty Medium Term Trend

Trend	UP
Initiation Date	07/08/20122
Initiated at	5336
High since change	5336
Reversal if closes below	5080

Important Results :

ABB , Aban Offshore , Bharti , Pantaloon , Tata Power , M&M , PFC

Thought for the day

To remain discipline and calm while waiting for disorder to appear amongst the enemy is the art of self possession - Sun Tzu