Day: March 19, 2019
HOW TO TRADE IN SIDEWAYS MARKET.
BETTER AVOID TRADING IN SIDEWAYS MARKET.
NOW HOW TO KNOW MARKET TURN SIDEWAYS:
DURING SIDEWAYS, MARKET MOVES IN A RANGE: IN NIFTY SAY 20 TO 50 POINTS AND IN BANK NIFTY SAY 100 TO 150 POINTS AND VOLATILITY WILL INCREASE. WITHIN A SECOND PRICE FALL TO 15 POINTS AND UP 10 POINTS IN NIFTY AND 40 POINTS DOWN AND 25 POINTS UP IN BANK NIFTY FOR MORE THAN AN HOUR.
BEST WAY NOT TO TRADE IN SIDEWAYS MARKET SPECIALLY IN OPTION BECAUSE STOP LOSS WILL TRIGGER BOTH CASE IN CE AND PE AND YOU WILL LOOSE CAPITAL AND YOU WILL BE FRUSTRATED.
TRADE ONLY IF RANGE BREKOUT OR BREADOWN.WAIT FOR DECISIVE MOVE AND KEEP PATIENCE.
EVEN IF WILLING TO TRADE( AS SOME HAVING ITCHING PROBLEM THEY CAN’T REMAIN WITHOUT TRADING) THEN TRADE FOR SHORT PROFITS ONLY SAY 25-35 POINTS IN BANK NIFTY OPTION AND 7-12 POINTS IN NIFTY OPTION BY KEEPING PROPER STOP LOSS OR AS MENTIONED.
DURING SIDEWAYS AVOID MULTIPLE TRADING. NO NEED TO TRADE EVERY DAY.
SAVE YOUR CAPITAL , WATCH MOVIES, GO FOR TRAVELLING. DO MEDITATION , SPEND TIME WITH FAMILY KIDS ETC.
STOP LOSS
Always maintain strict discipline in your trades. Remember to keep a strict stop loss and booking profits is a must (So that you know how much you can afford to lose).
ALWAYS KEEP STOP LOSS WHEN GIVEN OR KEEP 35 POINTS STANDARD STOP LOSS IN BANK NIFTY OPTION AND 10 POINTS IN NIFTY OPTIONFOR INTRADAY TRADE.
STOP LOSS IS A PART OF THE TRADING SYSTEM. YES THERE WILL BE A LOSS DUE TO STOP LOSS TRIGGER BUT YOU WILL SAVE YOUR CAPITAL TO BECOME ZERO AND THAT ‘S THE BENEFIT OF STOP LOSS.